JSE-listed Mara Delta, which operates as a property fund, has bought a property in Mozambique for almost R340 million (USD25.1M).
The property is home to the largest mall in the region and boasts tenants such as Shoprite, and KFC.
The company, which has previously expressed its interest in expanding into Mozambique, has done the deal indirectly as its wholly-owned subsidiary, Delta International Mauritius, has bought Gerania – which owns Mall de Tete – from Sericea Holdings and Transformers Investment.
Gerania holds 99.9 percent of Mall de Tete, which has the right of use and development of a property in Tete, Mozambique on which the retail
shopping centre, known as Mall de Tete, is located.
Mall de Tete, which was been developed by McCormick Property Development, opened on December 1.
Mara Delta says the deal makes sense because it is in line with its investment strategy to acquire rural retail centres in under-serviced markets, which meet the rigid investment criteria of strong counter-parties, underpinned by long-term dollar-based leases.
It notes a 3-year net income guarantee for the entire mall is in place, the bulk of which are agreed to in dollars, and the mall will be the shopping destination in Tete and the surrounding region.
The property has strong multi-national anchor tenants including Shoprite and Choppies, and other tenants include Pep, Jet, Woolworths, Studio 88 and KFC.
“Tete is considered as a major hub for economic growth in Mozambique. The region is currently experiencing a significant economic boost after major international mining companies injected billions of dollars into developing one of the world’s largest unexploited coking coal basins.”
The deal is subject to the usual conditions, and the purchase price may vary depending on warranties.