Fountainhead said the deal was in line with its strategy of acquiring quality retail assets, located in strong retail nodes and possessing good future growth prospects.

The total rentable area of the properties is 20,164 square metres at a weighted average gross rental of R153 per square metre as at January 1 2011.

The weighted average rental escalation by rentable area for the property is about 11% and the annualised property yield is 8.69%.

The effective date of the acquisition is the transfer date, which is anticipated to be June 1 2011.

The acquisition is subject to the conditions precedent, including Fountainhead undertaking a due diligence investigation of the properties, the conclusion of a new management and leasing agreement and Competition Commission approval.

The sellers of the properties are Kovacs Investments 338, Forum SA Trading 143 and Momentum Property Investments. The other sellers are Kovacs Investments 272 and Kovacs Investments 340.