Business Connexion (BCX) has agreed to sell its portfolio of properties around the country to JSE-listed Growthpoint Properties for R379 million.
Eight properties, with a gross lettable area of 48 065 square meters, are to be sold, subject to regulatory and competition authority approval. These are in Midrand, Pretoria, Durban, Cape Town and Port Elizabeth.
Growthpoint is paying an average R7 889 per square meter for the properties, which it says will grow its total asset base to R11.9 billion from R11.5 billion.
BCX directors say the group will rent the properties back for periods between three and 10 years as the decision that property holding is not BCX`s core business.
BCX has funded the properties through third-party debt. "The proposed disposal offers BCX the opportunity to restructure its rental terms on a more commercially efficient basis and permits the group to settle its outstanding debt on the BCX properties, while retaining approximately R130 million in cash," the group says in a published statement.
BCX has owned the properties for between eight and nine years.
The group is in the process of being acquired by telecoms network operator Telkom, with BCX shareholders to vote on the deal at a scheme meeting on Monday.
If scheme members approve the acquisition, BCX will be delisted and operate as a standalone subsidiary of Telkom.
The BCX share was trading 2c or 0.24% up at 820c this morning. Yesterday the share lost 10c or 1.2% to close at 818c.
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