Listed property loan stock company CBS Property Portfolio said on Thursday it would be acquiring a further 54% interest in The Wedge shopping centre in Morningside, Johannesburg, for R134,1m.

The acquisition will give CBS 100% ownership of the 13500m² shopping centre and the opportunity to make changes in its tenant profile.

It could also pave the way for redevelopment opportunities at the large neighbourhood shopping centre.

CBS previously owned 46% of the shopping centre. Its existing stake in the centre is worth about R100m.

CBS financial director Sean Mackay said the rationale for the transaction was that CBS wanted full control of the centre.

"We also want to make certain changes with regard to tenants, and this is easier with 100% control. We can now also make decisions about the potential redevelopment of the centre," said Mackay.

He said The Wedge was "trading strongly", and a number of retailers wanted extra space.

"Now we have the opportunity to make changes to our tenant profile," said Mackay.

He said the R134,1m price, subject to Competition Commission approval, would be settled with cash.

Mackay said CBS had large cash facilities available for the transaction.

He said there were no vacancies at the centre, and CBS had a waiting list of tenants "wanting to come in".

The Public Investment Corporation (PIC) is in the process of making a takeover bid for CBS.

Mackay said CBS management had discussed the acquisition of the 54% interest in The Wedge with the PIC.

"They (PIC) have been happy for us to acquire the full centre," he said.

The PIC bid for CBS was "currently with the Competition Commission" awaiting approval.

Mackay said CBS management supported the PIC bid, and an independent fair and reasonable study conducted by Ernst & Young had found the deal to be fair and reasonable.

The company had announced in March that the PIC had made a takeover bid for it in a transaction estimated at about R2,3bn.

Business Day