Telecommunications giant Telkom has raised R161 million in the first quarter of 2024 through the sale of non-core property assets.
This emerged yesterday, when the company published its quarterly financial results for the three months ended 30 June.
In the results, Telkom says business unit Gyro continued to rationalise the property portfolio through accelerated disposal and transfer of properties that are no longer core to the group’s operational requirements.
It says this ongoing process will continuously reduce the property footprint, optimise property operating costs and realise cash for Telkom.
Gyro is a standalone subsidiary of Telkom, which owns and manages a diverse portfolio of masts and towers, as well as real estate.
“We began the year with 42 properties with a sales value of R287 million undergoing the conveyancing process, with a target to transfer them during the financial year. From these, we successfully transferred 19 properties, and realised sales proceeds of R161 million in the first quarter,” says Telkom.
It notes the first auction for additional properties approved during the quarter was completed in June, resulting in sale offers for nine properties to the value of R33 million.
Signature of sale agreements is in progress, ahead of commencement of the conveyancing process, it adds.
According to the company, Gyro plans to dispose of more non-core properties (including those previously earmarked for property development) during the rest of the year.
Meanwhile, as Telkom continues to boost its coffers, it recently raised funds by means of a public bond auction in the debt capital markets and successfully issued two bond instruments with three-year and five-year tenors raising R345 million and R405 million, respectively.
It says the R750 million will refinance maturing debt and address upcoming maturities in FY2025.
“The cost of the issuance was achieved at competitive pricing, improving the group’s debt maturity profile and liquidity. We consider this an affirmation of the group’s outlook by local debt capital markets, that will continue to be a source for refinancing bond maturities.”
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