Phase one of Greenacres revamp ready by April

ACUCAP Properties is looking to improve returns across its retail portfolio, with redevelopments at Greenacres shopping centre in Port Elizabeth set to be completed by April.

Greenacres is one of Acucap Properties' main assets, and the revamp started early last year.

Phase one of the redevelopment is under way and due for completion within six months. This phase comprises the construction of 3340m² of additional retail space which will link the Woolworths entrance to that of Shoprite Hyper.

The estimated total cost of phase one was R86-million‚ of which Acucap's contribution was R43-million.

The company expects to achieve a 13.9% first-year return on phase one.

The total capital commitment for the Greenacres project‚ including all non-income-producing refurbishment work and mall upgrades‚ was R296-million‚ with Acucap's share coming to R148-million.

The project has an anticipated yield of 7.5%‚ and is expected to be complete by June 2016.

Acucap only managed distribution growth of 5.1% in the half-year to September when it reported its financial results on Friday.

Acucap may improve its performance in the second half of its 2015 financial year. The average distribution growth for 12-month results has been 8% this reporting season.

"Although Acucap's growth was below the sector‚ it was in line with market expectations and management guidance‚" Investec Asset Management property sector head Peter Clark said. – Business Reporter