Emira Property
Fund has made two further equity investments into grocery-anchored dominant
shopping centres in the USA, both located in Texas.
This furthers Emira’s
growing US investment strategy through which it has now assembled a portfolio
of eight value-focused retail centre assets in thriving states of the USA.
Geoff Jennett,
CEO of Emira, says: “Our latest acquisitions strengthen the value and quality
of Emira’s equity in its US retail portfolio and take its value to USD61m, or
more than R850m.”
Emira’s US
retail property exposure is now almost 6% of its total portfolio. This places
Emira on track to achieve its goal of 8% of its total assets in the US by June
2019.
The JSE-listed
REIT co-invests in the US with its in-country partners, the Rainier Group of
Companies.
The seventh
shopping centre to be included in its US portfolio is the 150,000sqf San
Antonio Crossing in Texas. The centre is 100% let and 88% occupied by national
tenants and has a 7.6-year weighted average lease expiry (WALE). It is
shadow-anchored by Texas-based grocery chain H-E-B Plus!. San Antonio Crossing
was acquired for USD24m at an 8.85% initial capitalisation rate.
The eighth
shopping centre acquired by Emira’s US partnership is Wheatland Towne Crossing
in Dallas, Texas. The 206,000sqf open-air, value-oriented centre is shadow-anchored
by mega-retailer Target. It is 99% occupied and 90% let to national credit
tenants. The centre has a WALE of 4.4 years. The retail centre was acquired for USD32.2m at
an 8.67% initial capitalisation rate.
Emira is a medium-cap
diversified REIT that is
invested in a quality, balanced portfolio of office, retail, industrial and
residential properties. At 31 December 2018, its directly held assets comprised
104 properties valued at R12.5bn. It invests indirectly in 22 shopping centres
valued at R1.04bn through its exposure to Enyuka Property Fund. It also has a
34.9% holding in JSE AltX-listed Transcend Residential Property Fund. Emira is
internationally diversified through its investment in ASX-listed Growthpoint
Properties Australia (GOZ) valued at R941m, and its equity investments in eight
grocery-anchored open-air convenience shopping centres with a combined value of
USD61m through its USA subsidiary.
More information from Emira, Tel: 011 028 3116 / www.emira.co.za
