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Aveng dispose of 70% of property holding vehicle for R1.13bn

Aveng dispose of 70% of property holding vehicle for R1.13bn

Photo by Duane Daws

7th April 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JSE-listed construction group Aveng has agreed to dispose of 70% of its Dimopoint property holding vehicle for R1.13-billion to Imbali Props 21, an entity of the privately owned Collins Property group, effective June 30.

This formed part of its strategy to diversify its funding sources, extend the debt maturity profile and take advantage of growth opportunities, where the group had embarked on a programme to dispose of noncore assets to raise at least R2.5-billion.

Aveng elected to retain a 30% shareholding in Dimopoint and would jointly administer the 35 properties with Collins for a market-related fee. The properties were currently tenanted by various entities within the group, while parent company Aveng Africa would sign a head lease for five and 12 years. 

Aveng had already disposed of its Electrix subsidiary in September last year.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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