New R403 million prime Pretoria commercial property
Emira Property Fund has secured yet another prime property in the flourishing Menlyn node in Pretoria.
An artist’s impression of buildings that are planned as part of the Summit Place development in Menlyn, Pretoria, where Emira Property Fund has secured a 50 percent stake in five buildings.
The R403 million, 50 percent share in five buildings in Summit Place, a new P-grade office development that includes other mixed uses, will further bolster Emira’s portfolio.
Set to become one of Emira’s flagship office properties, Summit Place offers access to the new Protea Hotel Fire & Ice and Menlyn Park Shopping Centre across the road.
Emira chief executive, Geoff Jennett, says: “We believe this investment will enhance our portfolio and the value we give our shareholders, and will also offer significant opportunities in the future.”
Emira concluded the acquisition deal last year at an average yield of 8.14 percent.
Jennett says Emira was able to take up the opportunity because of its excellent partnerships. “Emira was offered the opportunity to purchase a 50 percent undivided share with Neotrend, the same company that, in 2014, sold Emira a 60 percent undivided share in the Ben Fleur Boulevard shopping centre in Mpumalanga.”
Summit Place is on the intersection of Garstfontein and the N1, with great visibility towards the highway. Garstfontein also has several Gautrain bus stops, an added convenience for commuters travelling between Pretoria, Centurion, Johannesburg and OR Tambo International Airport.
Emira and Neotrend will take ownership of five of the 10 premium grade commercial buildings, with tenants including Grant Thornton, BDO, Summit Sky Grill & Bar, Land Rover, Assupol, and Sizwe Ntsaluba Gobodo.
The first two completed buildings were transferred to Emira in December 2015. They offer state-of-the-art security, ample parking, and finishes to create an appealing business environment. The remaining three buildings, which include office and retail space, will be developed by Emira and its partners for completion in January 2017.
“In addition to the excellent visibility and access to Summit Place, the tenants on long term leases are extremely appealing to an income fund like Emira, providing us with a solid income stream for a number of years to come,” says Jennett.
The large mixed-use node that is collectively known as Menlyn includes the Menlyn, Garsfontein, Menlyn Maine, and the Faerie Glen areas. Well serviced, busy and easily accessed from the suburbs and freeways, this node is dominated by the commercial hub of 353 490m² of mixed grade commercial space.
In addition to Menlyn Park Shopping Centre, which is increasing its size to a massive 170 000m², the area has a number of hospital facilities, a large and well represented motor trade environment, various value centres, a number of schools, and several green-rated commercial buildings.
Most recently the area has been granted a licence to operate a casino and conference centre in the immediate vicinity of Summit Place, which will result in the Menlyn area becoming even stronger, says Jennett.
“With the flurry of development in the area, an investment in prime property in Menlyn was an easy decision to make. Seeking to expand the fund’s property portfolio, premium grade offices in particular, this deal has provided us with an opportunity to further our own growth,” says Jennett.
Emira is a diversified JSE-listed REIT invested in a balanced portfolio of office, retail and industrial properties. Its assets comprise 146 properties valued at R13 billion. Emira is also internationally diversified through its 4.9 percent direct holding in ASX-listed GOZ, valued at R942.7m. Combined, its total assets come to R14bn.