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February 2015
O
ld Mutual Life Assurance
Company South Africa (Old
Mutual) and Business Venture
Investments represented by Pa-
reto have entered into an asset swap
transaction involvingmajor shopping
precincts, MenlynPark inPretoria and
Cavendish Square in Cape Town.
The asset swap will mean that
Paretowill acquire the 50%of Menlyn
ShoppingCentre fromOldMutual and
the latter will acquire the 50% share
of Cavendish from Pareto, with the
net consideration payable in cash.
The iconic shopping centres have
R10bn Landmark malls deal
been equally owned by Old Mutual
and Pareto for five years and there
have been developments in both
centres, withMenlyn currently under-
going a development upgrade. These
assets represent approximately R10
billionworth of prime retail property.
Peter Levett, Managing Director of
Old Mutual Property, whichmanages
the properties, said the asset swap
was mutually beneficial for both
companies and that the decisionwas
based on ensuring optimal growth in
their respective property portfolios.
“We are very pleased with this
value-enhancing transaction, which
gives us outright ownership of a key
retail centre, Cavendish. This will
enable us to access additional de-
velopment opportunities within our
portfolio. Our ability to reinvest the
net cash proceeds in new develop-
ments will further boost value in our
strong portfolio of retail, office and
industrial assets, representing a total
of R20 billion,” says Levett.
Marius Muller, Chief Executive
Officer of Pareto, comments: “We
are thrilled that this transaction will
see Pareto becoming the outright
owner of another regional shopping
centre. Menlyn Park Shopping Centre
is an ideal fit for Pareto’s portfolio,
especially as its current R2 billion
redevelopment project reflects Pa-
reto’s strategy of adding value to our
assets.”
“Pareto acquired other key land-
mark retail in Gauteng and the Free
State,” says Muller.
The transaction is subject to Com-
petition Authority approval and other
conditions associatedwith a transac-
tion of this nature.
■
Old Mutua l and Pareto
announce a deal for full
ownership of landmarkmalls
valued at R10 billion.
Infrastructure & Mixed Use