Collins Property Group sells letting enterprises for ZAR 649.75m

Collins Property Group Limited (JSE:CCPE) announced the disposal of its letting enterprises situated in Durban, Roodekop, and Port Elizabeth to Trident Property Holdings for an aggregate consideration of ZAR 649,750,000. The transaction, classified as a Category 2 transaction under JSE Listings Requirements, involves properties leased to Trident Steel and aligns with Collins' strategy to recycle capital for investments in the Netherlands. While Trident acquires the properties, a usufruct agreement ensures Dimopoint retains rights to two Roodekop properties. The transaction is subject to customary conditions precedent, including regulatory approvals and funding confirmations, with an expected completion by 31 July 2025. As part of the agreement, Dimopoint will pay Trident Steel ZAR 32,814,286 for repair costs on the properties. The net asset value of the disposed assets is approximately ZAR 616,935,714, with a net operating income of ZAR 43,593,621 for the six months ended 31 August 2024.