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Tradehold sells off development for R743m

Apr 13 2018 18:09
Lameez Omarjee

Cape Town – Investment holding company Tradehold has sold off a corporate residential development in Mozambique for R743m, as part of efforts to lower its exposure in Africa, outside of Namibia and South Africa.

The JSE-listed company, which is incorporated in Mauritius, announced in a notice to shareholders on Friday afternoon it sold the development known as Cognis in Maputo, Mozambique, to Grit Real Estate Income Group. The transaction is subject to certain conditions.

According to joint-CEO Friedrich Esterhuyse, the decision to sell Cognis is in line with Tradehold’s strategy to reduce exposure in the rest of the continent and to focus on key markets, these being South Africa and the UK.

“This also allows us to concentrate our energy on growing our portfolios in South Africa and the UK, which together represent more than 90% of our property business.”

Another contributing factor is that the disposal will help Tradehold reduce its debt, according to the notice.

Cognis was completed two years ago, at a cost of $49.7m or R600.5m. “The residential units in the complex are let on long-term leases to the US Embassy in Maputo and the American oil-exploration company Anadarko,” the notice read.

Esterhuyse said that the company has managed to sell assets above book value as was seen in the case of Cognis.

Conditions of the sale to Grit include a comprehensive and independent due diligence process to be commissioned by Grit.  

Grit’s investment committee and board of directors also have to give final approval of the transaction. Approval should also be given by competition authorities. Other regulatory approvals need to be given as well.  

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tradehold  |  africa  |  development  |  investment
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