The acquisitions were in line with Fortress' strategy of buying rural retail centres accessible to commuter transport‚ which had a strong national tenant profile and which were anchored by a national grocer‚ Fortress said.
The transaction would also enhance the quality of the property portfolio and increase Fortress' retail exposure.
Fortress has had a strong focus on retail-centre assets situated around transport nodes‚ including taxi ranks and bus and railway terminals‚ targeting the fast growth in these markets.
The transaction included Nelspruit Plaza‚ Rustenburg Plaza‚ Central Park Bloemfontein‚ New Redruth Village‚ an 82% undivided share in Sterkspruit Plaza and a 25% undivided share in Tzaneen Lifestyle Centre‚ as well as a loan to a development partner.
Resilient said its strategy was to own dominant retail centres with a minimum of three anchor tenants‚ and "although the properties being sold perform well and have excellent prospects‚ they do not fit Resilient's strategy".
The transaction‚ subject to various conditions‚ is effective from July.
The purchase price will be settled by the payment of R531m in cash and the balance through the issue to Resilient of A- and B-linked Fortress units.
Resilient already owns and controls 10.5% of the Fortress combined A- and B- linked units in issue and as such the transaction required linked unit-holder approval at a general meeting.
Also‚ as a portion of the purchase price was to be settled in Fortress linked units‚ the transaction required a statement by Fortress confirming the transaction was fair to linked unit-holders and that the board had been advised of this by an independent expert.
Resilient said the cash proceeds from the disposal would be used to reduce interest-bearing borrowings‚ while the Fortress A- and B-linked units being issued to Resilient "will be retained for the time being".
Fortress chief executive Mark Stevens said last month the fund would continue to focus on the retail market falling within the lower living standards measures since many areas were still under-serviced‚ even though this market was "starting to get a little bit cluttered".
Fortress reported 10.89% growth in distributions for the six months ended December and Stevens said future growth would be supported by Fortress' now "significant" pipelines for refurbishments‚ extensions and new developments.
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