Delta Property Fund to acquire Tembisa Mega Mart for R240m

Delta Property Fund had concluded an agreement to acquire Tembisa MegaMart, which is under construction, from Realty Dynamix 107 for R240 million in cash.

The Tembisa Mega Mart development in Gauteng has a new buyer after a previous deal to acquire the township mall failed.

The JSE-listed Black-controlled Delta said on Wednesday it was buying Tembisa Mega Mart for R240m — six months after rival company Dipula Income Fund walked away from the same deal.

Dipula first announced the acquisition of the mall — which is yet to be completed — in late 2012‚ at an expected cost of R169 million.

In September last year‚ the transaction was cancelled due to disputes about the development plan for the mall.

Delta’s acquisition‚ from Realty Dynamix 107‚ is subject to conditions‚ including all aspects of the development plan being substantially finalised to Delta’s satisfaction.

The deal also depends on the development being completed according to plan by August 1‚ “or such longer period as is reasonable in the circumstances”‚ among other conditions.

The turnkey Tembisa Mega Mart development is a 14‚000m² mall with an annualised yield of 9.1%. Delta said 81% of the mall’s space would be occupied by national tenants‚ including Pick n Pay‚ Pep and Buildrite.

It would also provide Delta — whose portfolio is weighted towards government and private-sector office space — with sectoral diversification. The effective date of the acquisition would be September 1.

Dipula’s agreement to buy Tembisa Mega Mart was cancelled last year by Realty Dynamix 107 on the basis that certain conditions had not been fulfilled.

Dipula disagreed with the grounds relied upon by the seller but accepted the cancellation.