Delta Property Fund Announces The Disposal Of Capital Towers
Delta Property Fund Announces The Disposal Of Capital Towers. Delta Property Fund has entered into an agreement dated 30 November 2022 with DMFT Property Developers Proprietary Limited to dispose of its leasehold property situated at 121 Chief AlbertLuthuli Street, Pietermaritzburg, as more commonly known as “Capital Towers”, for a cash consideration of R65.55 million.
The Delta board of directors continues to confirm the strategy for the company as being underpinned by the sovereign, with a more refined approach to the definition of sovereign. As part of the strategy, and the optimisation of the portfolio, it was agreed that the disposal of assets which were no longer strategic to the company would be undertaken.
Capital Towers is considered one such asset. The proceeds of R57.0 million will be utilised by the company to reduce debt and the Loan to Value (LTV) by 0.3% from 57.9%to 57.6% and to reduce vacancy levels by 0.8% from 33.9% (31 August 2022) to 33.1%. Delta property portfolio is spread across office, retail and industrial sectors with particular emphasis on government-tenanted office portfolio which is in line with the Fund’s strategic objectives.
At listing in November 2012, Delta had a total of 20 well established mainly AAA to B grade high-quality office buildings located across the country. At that time, the portfolio was independently valued at R2.1 billion. The Fund intends to continue focusing on strengthening the quality of its property portfolio, through acquisitions as well as refurbishments and upgrades to enhance their position as the preferred landlord for government and SARS.
Delta Property Fund is a predominantly soverign underpinned fund that is represented in all 9 of South Africa’s provinces. One of Delta’s key objectives from the outset was to diversify the portfolio into other high-growth assets classes. This has been achieved through a number of strategic acquisitions, including key retail and industrial assets.
