Listed investment company Sekunjalo Investments is selling its head office property for R22 million.
The sale is part of its strategy to restructure and reduce head office costs. In a Stock Exchange News Service announcement, Sekunjalo explains the property no longer houses its head office.
Most of the property is being rented to third party tenants, with a small portion rented by Sekunjalo group companies.
Sekunjalo has stakes in several industries, such as fishing, IT and financial services. It is also the black economic empowerment partner to global telecommunications giant British Telecom (BT), for its South African operations. Sekunjalo has a 30% stake in BTSA.
The company says it has taken a more focused, longer term view of its investments and believes the disposal of this non-core asset presents an opportunity to unlock the value of the capital growth in the property.
Sekunjalo is selling several sections of the Terraces building, in the Steenberg Office Park, in Tokai, Cape Town. The property has been sold to Dale Property Holdings.
This is the second time the parties have agreed to the deal. The first agreement lapsed and was reinstated in October last year. Transfer of the property was registered last November.
Dale is paying R22 million, excluding value-added tax, and paid a deposit of R2.5 million. Some R16.6 million was paid in cash on transfer of the property, and the balance and interest will be paid in 11 monthly instalments of R150 000 and a final lump sum payment.
The deal is expected to bolster earnings per share by 8.26% and headline earnings per share by 23.27%.
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