JSE-listed logistics group Grindrod South Africa subsidiary Grindrod Property has entered into an agreement with South African Corporate Real Estate (SA Corporate) to acquire various letting enterprises comprising head leases and underlying subleases.
The leases are held over five properties within the Port of Durban.
Grindrod Property leases the properties from subsidiaries of SA Corporate and the acquisition will result in Grindrod Property becoming the lessee in respect of the head leases and the lessor in terms of the subleases.
Grindrod Property says in a statement that the subleases are part of existing operations of Grindrod South Africa and are therefore integral to the business.
The expiry dates of the head leases are between December 1, 2029, and April 1, 2054.
Grindrod Property will acquire the subleases through a notarial deed of cession of the head leases for a consideration of R212-million, which the company will settle through debt funding.
The acquisition must be approved by the Competition Commission and the seller’s lenders, owing to the cancellation of the existing mortgage bonds over the properties, but no shareholder approval is required.