Paramount buys part of Golden Acre

Posted On Tuesday, 05 October 2004 02:00 Published by eProp Commercial Property News
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Listed property fund, Paramount (Paraprop), has acquired the retail component of one of Cape Town’s largest and most prominent landmarks, the Golden Acre in Cape Town’s Adderley Street, for R130-million.

Property-Housing-ResidentialThis is the Fund’s largest property acquisition to date and will bring the Fund’s assets under management to over R1,2-billion.

Paraprop will acquire the retail component of the Golden Acre Centre, which comprises the shopping centre, and a portion of the parking garage. The seller, Devland Holdings (Pty) Ltd, will retain ownership of the office tower and the remaining portion of the parking garage. The Centre has 16 324 m2 of retail space, which is the biggest of covered area of retail in Cape Town’s CBD, and extends over four levels. It lies at the hub of the City’s transportation network: the upper level is connected via a skywalk to the main taxi rank on the roof of the station concourse, and the lower level connects via underground mall direct to the station itself. At Ground level the Centre strategically connects the inner city with the East City, and draws strong pedestrian flows.

Managing Director of Paramount, Rodney Squire-Howe says the acquisition is in line with the Fund’s strategy of growing its property portfolio in order to increase market capitalisation and to benefit from increased diversification.

"We believe that the Golden Acre has great potential – it is currently fully let, and will benefit from the revitalisation of the CBD and the growing trend of residential development in the city. The city is re-establishing itself as a major retail and entertainment node, and this trend will be reinforced by the growing residential population. There are also planned development initiatives in the East City and around the station precinct, which will benefit the centre. It is our intention to fine-tune the retail mix and look at re-branding the centre as an exciting in-city shopping and entertainment zone. There is potential for significant redevelopment in future, and we anticipate that the centre will further support the growth of the inner city."

The acquisition of the Golden Acre follows Paraprop’s successful 34 St Georges project, currently under construction on the corner of Strand Street and St Georges Mall. This conversion of an office block into upmarket residential apartments enjoyed excellent sales, and the first completed units are expected to be handed to purchasers in April 2005.

This project is one of several other planned residential conversions in the central city, including Cartwright’s Corner and The Adderley in Adderley Street, Mutual Heights in Darling Street, Perspectives (formerly Liberty Towers) in Roeland Street, and the old BOE building in the western part of the city.

The acquisition will be effective as of November 1 2004, and will be funded through a combination of borrowings and equity.

Last modified on Tuesday, 13 May 2014 13:59

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