Newpark REIT sells Crown Mines property for R101.4m

Newpark REIT Limited, through its subsidiary CP Finance Proprietary Limited, has agreed to sell the Crown Mines property and its associated rental enterprises to Aviwe Nonya Proprietary Limited for a disposal consideration of R101,400,000. This amount includes VAT at 0% and will escalate at 0.65% per month from December 1, 2025, until the transfer date. The transaction, signed on September 8, 2025, is expected to finalize with the property's transfer on or about December 1, 2025. The proceeds will be used to fund new acquisitions or reduce debt.

The Crown Mines property, an 11,277m² industrial warehouse in Johannesburg, is fully let to Bidvest Afcom (Pty) Ltd on a triple net lease expiring on December 31, 2029. The property's value was R99,700,000 as of February 28, 2025, with attributable profits of R11,195,934. The transaction includes a R1,500,000 cash deposit, with the balance secured by a bank guarantee.

A transaction fee of R507,000 (excluding VAT) is payable to Tygon Capital (Pty) Ltd for their services, an associate of Newpark's chief executive, Auri Benatar. This transaction is classified as a category 2 transaction under JSE Listings Requirements, not requiring shareholder approval.