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.

Kobus_Verster

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

Most Popular

Sea Point's Mojo Market launches this April 2017

Apr 05, 2017
Mojo Market
An entire block of a Sea Point retail space will be dedicated to a new, seven-day food…

Investing in student accommodation: pros and cons

Mar 31, 2017
Bill Rawson CEO
The recent protests at universities and colleges across SA have caused many to question…

South African Council of Shopping Centres students shine at graduation function

Apr 05, 2017
CSCM Ilse Pretorius and Professor Chris Cloete
It was an evening of glitz, glamour and achievement as the 2016 Certificate of Shopping…

Atterbury wins tender to develop massive new Gauteng office for Deloitte

Apr 11, 2017
Deloitte New Gauteng Offices
Atterbury has won the fiercely contested tender to develop a new Gauteng office for…

Interest rate cuts ruled out after downgrade

Apr 13, 2017
SA Reserve Bank
The downgrading of South Africa's debt to junk status and the firing of Pravin Gordhan as…