Acquired for R1,1bn, the portfolio consisted of Brooklyn Shopping Mall, Pretoria, Walmer Park Shopping Mall, Port Elizabeth, 50% interests in Northgate Shopping Centre in Randburg, Kolonnade Shopping Centre in Pretoria and Longbeach in Western Cape, as well as four noncore properties in Pretoria.

Grayprop, Marriot Property Services, Investec, Hyprop and the Wapnick family vied for the portfolio. Ettin and Greenberg say the Primegro deal offered Richway an attractive property investment for its vendors. They were also satisfied with the strength of Primegro's management team.

The deal was settled partly through the issue of Primegro linked units worth R411m at 670c and R764m in cash, provided by a consortium of financial institutions involving Nedcor Investment Bank, Absa and BoE Bank.

Ettin and Greenberg say any securitised, sound property portfolio needs dominant regional shopping centres with a high percentage of national tenants that hold solid, long-term leases. These regional centres make a secure long-term property investment, they say.

In the five regional centres Primegro acquired, more than 70% of tenants are national players that will honour leases even in tough trading conditions, they say.

Primegro is one of the largest listed property loan stock companies, with a portfolio worth R2,5bn.