SA Retail Properties and Martprop Property Fund have bought the 40 000sqm Musgrave shopping centre in Durban for R375 million. The Durban-based companies, both of which are managed by Marriott Property Services, each have a 50% undivided share of the former Sanlam-owned property, and it is SA Retail's biggest catch since listing in 2001 bringing the value of its portfolio to R1,3 billion. Martprop's portfolio has now reached R1,7 billion.

SA Retail managing director Peter Sparks says the Musgrave Centre deal follows SA Retail's purchase earlier this year of a 50% undivided share of Sanlam Centre in Pinetown from Sanlam for R95,4 million, and underscores the close relationship enjoyed with Sanlam Properties.

He says Musgrave Centre has convenience, variety and atmosphere, and is one of Durban's premier shopping destinations with a strong focus on affluent shoppers in up-market, high density Berea and neighbouring areas. The acquisition is consistent with SA Retail's investment philosophy.

The centre has an excellent fashion mix, and a 66% composition of national tenants including Pick 'n Pay, Woolworths, Stuttafords, Truworths and Ster Kinekor. Tenants in the centre are currently enjoying above average trading densities.

Sanlam Properties developed the small regional shopping centre in 1976, and refurbished and redeveloped it extensively over the years. The centre is easily accessible and is well located on public transportation routes.

Managing director of Martprop, Roger Perkin, says that the acquisition of Musgrave Centre is a strategic step in the fund's pursuit of top-quality retail property assets. "We believe that the retail sector will continue to perform strongly and the investment reflects our confidence in the centre to deliver sustained rental growth, which will complement and add to the performance of the existing portfolio."

The effective date of the transaction is likely to be September 2004 when Marriott Retail takes over the administration and leasing of the centre.

Marriott Retail, a division of the Marriott Group, is one of the largest managers of retail property in South Africa with 56 centres under its wing.

For more information contact Peter Sparks 0824625887