JSE-listed food services franchisor Famous Brands has entered into an agreement to acquire the entire share capital of and claims against Steers Properties and the entire share capital of and claims against Halamandaris for R181-million, which will be settled from the company’s existing cash resources.
Famous Brands’ primary operations and head office have resided at the 478 James crescent property since 1990 and has been continuously leased from Steers Properties.
As a result of spatial capacity constraints, a plan has been developed, which requires expansion and reconfiguration of the 478 James crescent property to better align with the company’s supply chain plans and activities.
"Famous Brands is best placed to redevelop the 478 James Crescent property and the 37 Richards drive property, together with a neighbouring property it owns, in order to create a better functioning, fit-for-purpose campus at which its Gauteng logistics operations can be consolidated, and efficiencies gained.
"Midrand remains the most suitable centre of gravity for the Gauteng logistics operation," the company notes.
The 478 James crescent property houses the group’s head office, central support services, Signature Brands, AME, retail and supply chain administration teams. The Gauteng ambient warehouse, sauce and spice plants, former Gauteng bakery plant and supply chain engineering team also operate from the 478 James crescent property.
The 37 Richards drive property neighbours the 478 James crescent property and will be used for expansion together with the property situated at 39 Richards drive, which was acquired by the company in the previous financial year.