HARARE, Aug. 28 (NewsDay Live) – The Pfuma Fund (Pfuma) has completed the acquisition of Cork Corner in Harare’s Avondale, adding the fully occupied quick-service restaurant and casual dining property to its income-generating portfolio.
Arctic Blue Asset Management (Arctic), the fund’s asset manager, said the acquisition became effective on August 19, bringing the 1 203-square-metre property at the intersection of King George and Cork roads into the fund’s portfolio.
Previously valued at US$6,94 million, Cork Corner is fully occupied and carries a gross yield of 7,8% and a weighted average lease expiry of 4,58 years, providing Pfuma with a relatively stable rental income stream.
The acquisition expands Pfuma’s portfolio, which previously comprised Hogerty Hill Centre and Chegutu Retail Centre. The fund also has a development pipeline spanning Eastlea, Kwekwe, Chivhu and Ruwa.
At the time of listing, Chegutu Retail Centre was fully occupied, while Hogerty Hill had an occupancy rate of 70%.
Pfuma owns and manages its properties through the listed Pfuma Real Estate Investment Trust, which had an estimated net asset value (NAV) of US$23,74 million at launch.
“Unitholders are hereby notified that pursuant to the information and transaction structure detailed in the Fund’s prospectus and pre-listing statement, we are pleased to advise that the Fund has completed the acquisition of a certain piece of land situated in the District of Salisbury, being the remaining extent of Lot 4 Block C of Avondale, also known as Cork Corner,” Arctic said.
“The acquisition was settled by way of the issuance of 69 400 000 additional units to the seller. Following this issuance, the total number of units in issue increases from 471 351 750 to 540 751 750.”
The transaction resulted in a dilutive impact of 12,84% on existing unitholders’ shareholding.
However, Arctic said the acquisition was earnings accretive and was expected to increase rental income per unit by an estimated 16,71% on an annualised basis.
Pfuma’s NAV stood at US$46,87 million at the end of its first reporting period, from February 6 to March 31, while net property income amounted to US$316 582.
With Cork Corner now added to the portfolio, Pfuma has expanded its income-generating asset base, while its development pipeline in Eastlea, Kwekwe, Chivhu and Ruwa provides further scope for growth.
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