Delta Property Fund sells five properties valued above R63 million
By Nkululeko Khanyile
Published on 2024-10-28 12:28:08
Johannesburg,South Africa
Delta Property Fund has entered into five separate sale agreements with five distinct purchasers for five properties across South Africa.
In a first sale agreement,the company is selling its building which is known as In2Fruit which is situated at 67 Middle Road,Bardene Extension 42,Boksburg to Luis Antonio Narciso for cash consideration of R10.8 million.
In a second sale agreement,it is selling its building which is known as Protea Coin which is situated at 244 Vonkprop Road,Samcor Park Extension 1,City of Tshwane to Tupelostax Investments Proprietary Limited for cash consideration of R2.8 million.
In a third sale agreement,it is selling its building which is known as Unisa which is situated at 25-29 Rissik Street,Marshall Town,Johannesburg to Guder Properties Proprietary Limited for a cash consideration of R18.5 million.
In a fourth sale agreement,it is selling its building which is known as Stats House which is situated at 17 Henshall Street,Nelspruit to Aberaha Trading Proprietary Limited for a cash consideration of R8.5 million.
In a fifth sale agreement,it is selling its building which is known as Pine Parkade which is situated at 260 Monty Naicker Street,Durban to Bemath Poverty Alleviation Trust for a cash consideration of R23 million.
The company has stated that has decided to dispose these properties because were no longer adding value to the portfolio due to a prolonged and high combined vacancy rate amongst them with limited prospect of significant improvement in the short to medium term on account of prevailing market conditions.
The company confirmed that it will use that R63.60 million to reduce debt and to reduce vacancy levels by 2.0% from 33.4%(as of 29 February 2024) to 31.4%.
The company has mentioned that the sale agreements are expected to be finalised around February 2025 once all properties are transferred to the new owners.
Delta Property Fund is owning 91 high quality properties in nine provinces across South Africa,and its properties are accommodating private and public entities.