Liberty offices. Picture: SUPPLIED
Liberty offices. Picture: SUPPLIED

JSE-listed property company Liberty Two Degrees (L2D) said on Friday that it had sold the Liberty Life Building in Century City Boulevard, Cape Town for R370m. 

The company said the disposal is in line with its strategy to be a precinct-focused and retail-centred real estate investment trust (Reit).

L2D said its share of the purchase consideration is R123.2m as the company owns 33.3007% of the property. 

L2D, which owns landmark Gauteng malls including Sandton City, Nelson Mandela Square, Eastgate and Melrose Arch, recently reported a decent set of results for the first half of 2019, supported by improved trading at some of its shopping centres.

At the time, the Reit achieved trading density growth (sales per square metre, one of the key metrics for the performance of retail centres), of an average 3.3% for the six months to June — up from 2.5% in December.

Sales growth is still nowhere near the average 7%-8% reported by most mall owners three to four years ago, but the rebound provides a glimmer of hope that better times may lie ahead for retail-focused Reits, many of which have reported shrinking profits and lower dividend growth recently.

The Liberty Life Building transaction is subject to approval by the competition authorities in accordance with the Competition Act. 

L2D shares were down 1.56% on Friday at R6.94.

With Joan Muller

gavazam@businesslive.co.za