Nick Wilson

LISTED property loan stock company Paramount Properties (Paraprop) says the acquisition of 11 new properties worth R839m is likely to make it more attractive to large investors.

The company said on Thursday that the transaction would boost its market capitalisation to more than R1bn.

Paraprop MD Rodney Squire-Howe said the transaction had significantly increased the group’s market capitalisation from its previous R600m and that this would put the company on the radar screen of bigger investors.

“So we are now moving into a league where the bigger investors can participate more,” he said. The property deal would also boost the property portfolio to just under R2bn.

Squire-Howe said the acquisitions were an “excellent investment” and contained a good mix of office retail and industrial properties.

“The investments range from high-profile, blue-chip properties to those where we believe we can add some value, to solid, long-term lease cash flow streams,” he said.

Among the properties is The Terraces, a 24000m² office property on Cape Town’s Bree Street, acquired for R244m, as well as the next door office complex called 33 On Bree.

Paraprop also bought the Lighthouse Mall in Umhlanga, KwaZulu-Natal, for R87,5m.