MD Paul Theodosiou said yesterday that the acquisition would be funded from internal cash resources.

Construction of the 39,000m² development has begun, and it is due to be completed by October next year.

Theodosiou said the decision not to issue paper also gave certainty to developer Louis Peens as he would not be dependent on market response to new shares.

The new mall is adjacent to Acucap's existing 20,500m² Kempton Park Hyperama, to which it will be linked, creating a regional retail centre of just under 60,000m².

The anchor tenants will be Checkers Hyper, Pick 'n Pay, Woolworths and Edgars, with a range of franchise and other line shops.

Acucap said the acquisition was in line with its focus on acquiring good-quality properties that would contribute to sustained growth in distributions and long-term growth in the market value of the company's property portfolio.

Theodosiou said 65% of Acucap's portfolio was retail, and it was comfortable with an "overweight retail position" because the sector was performing well.

"Regional retail assets have performed consistently well over the long term."

He said the company's market capitalisation was R560m and its aim of increasing growth in distributions could entail bulking up.

However, Theodosiou said the company would not buy assets just for the sake of increasing market capitalisation as this could dilute Acucap's earnings.

"It's a seller's market, and we believe the yields are low. We think it is more opportune for sellers than it is for buyers," Theodosiou said.