Emira rural retail partnership grows its portfolio | Fin24
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Emira rural retail partnership grows its portfolio

Jun 12 2017 16:57

Johannesburg - Emira Property Fund officially launched the specialised Enyuka Property Fund in partnership with ONE Property Holdings earlier this year, and already Enyuka’s portfolio of retail properties is growing.

It has acquired five new shopping centre assets. Enyuka’s original portfolio of 15 rural retail assets now stands at 20, which equates to a 31% increase in the portfolio in terms of square metres.

The final step for the Enyuka transaction was getting the go-ahead from the Competition Authorities, which was granted in early 2017. Emira holds a 49.9% share of the ordinary equity in Enyuka, and ONE a 50.1% stake. Both are hands-on in deciding for the fund and the same applies for the portfolio, with a 50/50 asset management joint venture.

Together, the partners will grow their retail assets in Enyuka and build a larger lower LSM retail portfolio.  

Enyuka started out with Emira’s R575m portfolio of retail properties, a R50m cash contribution and a gearing cap of 50%, securing resources for immediate acquisitions and developments of a further R625m. In addition, Enyuka had a pipeline of R400m of similar assets. Also, Enyuka has first right on opportunities for lower LSM retail coming from both ONE and Emira.

Boosting its original portfolio, Enyuka recently acquired the 6 800m² Jock of the Bushveld Centre in Barberton, which counts Pick n Pay, Absa and Mr Price among its tenants. It also acquired the 2 800m² Boxer Centre in Hluhluwe, with tenants including Boxer, KFC and Dunns.

In addition, three properties are in the process of transfer. They are the 6 600m² Turfloop Centre in Turfloop, with big tenants Pick n Pay, Barnetts and FNB; the 2 300m² Boxer Centre in Melmoth with major tenant Boxer; and the 4 900m² Richmond Plaza in Richmond, with tenants that include Boxer, Lewis and Capitec.

Currently, Enyuka has a further R500m under negotiation.

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