Annuity to acquire Clarins’s property portfolio

South Africa-based property loan stock company, Annuity Properties, is expected to acquire Clarins SA’s property portfolio.

Along with Clarins’s portfolio, the company will also buy McCarthy/Unitrans property portfolio and the Coricraft distribution centre.

Aggregate acquisition cost is expected to be around ZAR369m (around $37.56m). Required funds will be accumulated through both new and existing debt facilities and/or the issue of fresh annuity linked units through a private placement.

Annuity Properties said, "The related property acquisition and transaction costs will be funded through new debt facilities. In this context the minimum amount Annuity will seek to raise via the private placement will be about R193.6m."

Clarins deal is expected to close on or around 15 September 2013 and McCarthy/Unitrans and Coricraft deal on or around 1 October 2013.

Under the Clarins deal, Annuity Properties will buy Johannesburg located Clarins’s head office, industrial property and an office property in Cape Town.

According to Annuity Properties, McCarthy/Unitrans deal will create good tenant profile as McCarthy Audi/Unitrans Nissan hold 78% of the total specialised retail gross leasable area.

The company said, "Coricraft is on a 10-year triple-net lease which escalates at the higher of 8% or CPI (consumer price index) per annum and has eight years and one month remaining … terminating on July 31 2021.

"Coricraft will sign a new 10-year lease upon transfer of the Coricraft Distribution Centre Property into Annuity’s name."