JSE-listed Emera Property Fund on Monday announced a 35 18.45 million (approximately R300 million) investment in a 50 353m² open-air shopping center in the United States, bringing the group’s total equity investment in the United States to R2.2 over the past five years. Billions
Summit Woods Crossing Shopping Center is the group’s 12th acquisition, in which it is jointly investing with its U.S. investment partner, Rainer Group of Companies.
Read: Emera plans to increase its exposure to the US market
The latest acquisition expands the group’s total offshore equity investment in the United States to 17% of its total asset base.
Today, Emera has a large equity investment of 350,000m² in the United States, with a portfolio value of 660 million of which it has contributed $ 140 million to equity.
“Our U.S. equity investment has become an important and key strategy. They enhance the diversity of the emirate through geography, tenancy and the economy, “said CEO Geoff Janet in a statement.
“We’ve set a track record and built good relationships with our partners in the US market, enabling us to access this great investment with about 10% of our annual cash returns in US dollars annually.” However, we expect a much higher total return on our investment in US dollars. ”
The new grocery-anchored shopping center is already 98% late and occupied by more than 90% of national tenants “with high credit quality underpin.” It has secured the Big-Box retailer’s goal as a shadow anchor among hardware giant Loyes, department store Kohls and other tenants at TJ Max and BestBuy (Consumer Electronics).
The group plans to secure a second grocery anchor to strengthen the center’s dominance and help unlock more value from the property.
“This is the first time that Emera has made an investment in the United States to undertake a significant asset management initiative to create a capital value rise and still satisfy its yield requirements,” the group said.
Continuing the initiative beyond SA
The group reiterated its commitment to expand its horizons beyond SA.
Emera currently owns 77 direct-occupancy properties in South Africa – spread across the retail, office, industrial and residential sectors – valued at R9.8 billion.
“Our international strategy enables us to repurchase and allocate capital in a more resilient environment than South Africa’s limited economy, and provide a US $ – fixed return,” Janet said.
“Given the right opportunities, we want to continue this investment path with our American partners taking an opportunity-by-opportunity approach, focusing on selected parts of our retail assets and paying a price for our shareholders.”