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Restructuring of Shoprite non-core assets sees major earnings from sales of stores nationwide

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High Street Auctions joint managing director Lance Chalwin-Milton says buyer appetite for Shoprite’s properties is growing.

Shoprite retail centres in the Strand in Cape Town and Cosmo City in Joburg fetched R59million and R36.25m respectively at High Street Auctions’ recent monthly real-estate sale.

As with the other 15 properties High Street has sold for Shoprite in the past year, the board has 20 working days in which to consider the offers before the sales are made final.

This pushes to more than R500m the value of property sold at auction by Shoprite in the past year in a restructuring of the retail giant’s non-core real estate portfolio. A total of 17 properties went under the hammer in the current portfolio realignment.

High Street Auctions joint managing director Lance Chalwin-Milton says buyer appetite for Shoprite’s properties is growing.

“The market sees these centres as excellent long-term investments, especially since they’re all being sold with new five or 10-year leases taking effect on transfer, plus options to renew.”

The centres sold most recently are:

Shoprite Broadway Square at the intersection of Broadway Boulevard and Onverwacht Street, Strand.

This centre was sold with a new 10-year Shoprite lease on transfer, plus three further five-year renewal options. New Shoprite Liquors and OK Furniture leases of five years were also to be signed on transfer, with four five-year renewal options thereafter.

Shoprite Cosmo City at the intersection of South Africa Drive and United States of America Avenue in Gauteng. This was also sold as a fully let centre with a new 10-year Shoprite lease to be signed on transfer, followed by three further five-year renewal options. Additional tenants include Pepkor Cell.

Other Shoprite properties sold comprise both vacant land and retail centres. These sales have been confirmed:

92 Alexandria Rd, Parow, R350000.

Corner Wesley and Abegglen streets, Strand, R16m.

Corner Main and Market streets, Vredenburg, R20.5m

147 Voortrekker Rd, Bellville, R35m.

Corner Alberts and Ben Alberts Way, Kathu, R41m.

176 Voortrekker Street, Parow, R40m.

25 Oranje Street, Kroonstad, R5.2m.

10 Main Road, Mfuleni, R58.5m.

149 Victoria Street , Woodstock, R23.1m.

Correr Adderley and Sikulu streets, Cradock, R175000.

Corner Paul Kruger and Mkondo streets, Carletonville, R1.8m.

219 Utrecht Road, Vryheid, R60m.

53 Randu Street, Lotus Gardens, R42.75m.

45 Chapel Street, Kimberley, R33.5m.

26 Buitekant St, Kroonstad, R32.5m.

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