R323m committed for Cape Gate Lifestyle acquisition
Nedbank Property Finance has made a good retail commitment, granting finance of R323m to FPG Group for the purchase of the Cape Gate Lifestyle from Hyprop Investments.
Nedbank Property Finance on Wednesday said it had committed finance package of R323 million to FPG Group for the purchase of the Cape Gate Lifestyle precinct from Hyprop Investments.
The acquisition comprises 30 000 m2 GLA which includes a lifestyle and décor centre; Engen service station; drive-through Steers and KFC outlets; and a Toyota dealership.
The six properties are located along the well-established Okavango Road in Durbanville, Cape Town, adjacent to the Cape Gate regional mall and in close proximity to the highly successful Makro development, which is partly owned by Nedbank.
Tenants of the lifestyle and décor centres include the Super Spar, Virgin Active, Build-It Hardware, Cash Converters, Pure Plastics, Postnet and Tafelberg Furniture Stores.
Richard Thomas, Nedbank Property Finance’s regional executive for the Cape, says that the bank was enthusiastic about funding the development not only because of its long term relationship with the FPG Group, but also because the properties are well located and tenanted by quality national tenants on long term leases.
“We have been the FPG Group’s financier of choice for well over five years and we are proud to partner with them once again in this transaction. The Group is an experienced retail operator and we feel sure that they will add value to this key retail property in Cape Town’s northern suburbs,” says Thomas.
The FPG Group – then known as Foodprop – was established in 1989 as a wholly-owned subsidiary of the Foodworld Group, which was then the largest independent retail group in the Western Cape, consisting of 13 supermarkets and four wholesale outlets, which was sold to Shoprite. Foodprop was created to build a property owning entity to source new sites for its retail division and to build a diverse property portfolio to include the industrial and office sectors.
In 2006, the Group concluded its largest single property development – the R300 million ‘The Claremont’, which consisted of 322 apartments. In 2013, the Group rebranded to become the FPG Group to reflect the broader focus across all property sectors, and also made its first international property acquisition in the UK.
Today FPG Properties has grown to include 38 properties, primarily in the retail sector, with limited exposure in the office, industrial and residential sectors. The portfolio comprises a GLA of more than 160 000m² and over 70% of this space is occupied by national tenants.
“With the latest IPD results confirming that the retail sector has held its ground, Nedbank Property Finance continues its ongoing commitment to the sector by providing agile and relevant financial solutions that realise opportunities for quality retail property clients such as the FPG Group. This, coupled with our strong partnership approach, is a strong proposition that ensures we remain the market leader in the commercial property finance sector,” concludes Thomas.
