Investec to sell Limpopo, Rustenburg malls for R727m to invest abroad

Investec Property Fund announced on Monday that it plans on selling all its shares in two South African malls, with the aim of investing the proceeds in Europe and the UK.

The real estate investment trust fund, which owns 66.7% of Musina Mall in Limpopo and 70% of Boitekong Mall in Rustenburg, wants to sell both properties for a total of R727m.

According to Investec, selling the two malls will provide funding to be invested into European logistics real estate – one of which is the recent acquisition of two Belgian logistics properties for a purchase consideration of €70.4m (R1.1bn), expected to generate a 9.5% investment yield in rands.

At the moment, the conclusion of the disposal awaits approval from the Competition Commission, but are expected to conclude in March 2020.