Pfuma Fund has acquired a premium quick-service restaurant complex in the upmarket Avondale suburb in a US$6.94 million deal.
The Victoria Falls Stock Exchange-listed Real Estate Investment Fund (REIT) issued 69.4 million units at its initial offer price of $0.10 per unit to finance the US$6.94 million Coke Corner acquisition.
“…the Fund has completed the acquisition of a certain piece of land situated in the District of Salisbury, being the remaining extent of Lot 4 Block C of Avondale, also known as Cork Corner,” Pfuma said.
“The acquisition was settled by way of the issuance of 69,400,000 additional units to the seller,” it said, adding that “following this issuance, the total number of units in issue increases from 471,351,750 to 540,751,750”.
This results in a dilutive impact of 12.84 percent to existing unitholders’ shareholding, Pfuma said.
However, the property is earnings accretive, contributing an estimated 16.71 percent increase to rental income per unit on an annualised basis.
The property has a gross lettable area of 1,203 square metres and a weighted average lease expiry of 4.58 years.