Listed property fund Texton has acquired a portfolio of logistics properties in Cape Town from listed Equites Property Fund for a total of R205.3million.
Texton said yesterday that the acquisition was consistent with its investment strategy of acquiring portfolio-enhancing industrial properties that offered long-term, sustainable income streams and an attractive, risk-adjusted return profile. It said the investment also improved Texton’s tenant and sectoral profiles by reducing its exposure to office properties while improving the percentage of large national tenancies underpinned by strong tenant covenants.
The portfolio provided exposure to logistics assets well-suited to the current macro-economic environment and would be earnings accretive for Texton, it added. The properties were a 2880m² property in Milnerton let to Crossroads Distribution, the 5347m² Execujet Hangar occupied by Execujet Aviation, a 3000m² property in Madrid Road let to NGK Ceramics and a 3800m² property in Montreal Road let to Courier IT.
Texton said each was single tenanted, the average lease term 4.4 years and annual rental income R19.27m. Shares in Texton dropped 2.40percent on the JSE yesterday to close at R5.70.
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