Thursday, 03 September 2015 12:35

Aveng Group nets R1.1bn from sale of the majority of its South African properties to Collins Property Group

Written by
Rate this item
(0 votes)

Aveng has concluded the sale of the majority of its South African properties to Imbali Props 21 Proprietary Limited (“Imbali Props 21”), a commercial property development and investment company within the Collins Property Group, for R1.127 billion.


In terms of the transaction, Aveng disposed of 70% of Dimopoint, a special purpose vehicle it had created to house 35 of its properties. These included most of Aveng’s regional offices and manufacturing properties, with the exception of Jet Park in Boksburg. Late last year Aveng relocated its corporate head office to the Jet Park campus, which also houses Aveng Grinaker-LTA.

This property transaction forms an important part of Aveng’s plan to strengthen its financial position and reduce debt.

“With a stronger balance sheet and improved liquidity, we are now well placed to strongly drive Aveng’s medium term strategy, thus positioning the group for future profitability,” says Aveng Group CEO Kobus Verster. 

In addition to the R1.1 billion cash injection, the transaction with Imbali Props 21 is significant for other reasons. With Aveng retaining 30% of Dimopoint, there are opportunities for Aveng and the Collins Group of companies to partner in the future. “We may consolidate and upgrade some of the properties in the Dimopoint portfolio and also see good opportunities to partner elsewhere in Africa,” says Verster.

“We are pleased to have concluded this transaction as it adds significant and valuable stock to our commercial property portfolio. We are also delighted to be able to partner with Aveng, which is one of Africa’s largest infrastructure groups.” says Murray Collins of the Collins Property Group.

Managing Executive of Investment Banking at Nedbank CIB, Brad Maxwell said the bank is proud to have partnered with Aveng and the Collins Group by acting as corporate advisor and sole funder to this transaction.

Based in Durban, Collins Property Group has been run by four generations of the Collins family over more than a century. Through its association with JSE-listed Tradehold, the group has developed and owns a multi-billion rand portfolio of mostly commercial properties throughout Southern Africa. Most of the properties developed are retained as part of the group’s property portfolio, with tenants including leading blue chip clients.

Last modified on Thursday, 03 September 2015 13:18
Nedbank Property Finance is a market leader in commercial property finance, enabling you to realise your property opportunities through a diverse range of financing solutions.

Most Popular

Sandton Convention Centre appoints new Exhibition Sales Manager

Nov 24, 2016
Daksha Vallabh Sandton Convention Centres new Exhibition Sales Manager
Daksha Vallabh joined the Sandton Convention Centre team as Exhibition Sales Manager in…

Cape Reit fund in pioneer JSE listing

Nov 15, 2016
Mike Flax Spear Properties Reit
Cape Reit Spear Reit becomes the first Western Cape region-specific property fund to list…

Major face-lift for Pier Place in heart of Cape Town's Foreshore district

Nov 22, 2016
Pier Place view of rooftop garden
Recently acquired by Aria Property Group, Pier Place, a prime-situated 15-storey, 15…

15 days to Menlyn Park Shopping Centre’s fantastic new look

Nov 09, 2016
Countdown 15days
Menlyn Park Shopping Centre is close to completing its ambitious R2.5 -billion…

Park Square new R1bn mixed-use office and retail development in KwaZulu-Natal

Nov 30, 2016
Park Square
Nedbank today announced that it has committed to investing R1bn into a new mixed-use…