Redefine Properties has signed an R80m sale agreement to dispose of its Rosebank Corner office block as it ramps up its strategy to exit underperforming assets and cut its debt levels.
The building, located on Jan Smuts Avenue in the heart of Rosebank, has been sold to Live Rosebank. While the office block was previously valued at just over R91m for office use, the final sale price of R80m was negotiated on its potential for residential conversion.
Redefine said the sale agreement includes a R1m nonrefundable fee payable shortly after signing, with the balance settled on transfer. If the deal is not finalised within 20 months, the price will rise slightly each month until a 24-month deadline is reached.
“Recent deals in the node are at R6,000/m². The disposal was concluded at R8,968/m², a premium the directors consider fair market value for residential use,” the group said.
Though Redefine director Simon Fifield is linked to the purchaser, the deal falls below JSE categorisation thresholds and was disclosed voluntarily, the group said.
Redefine said Rosebank Corner contributed R3.85m to distributable income and R7.8m in net profit for the 12 months to February 28, with the disposal supporting efforts to improve portfolio quality and reduce gearing amid weak office demand.
“This disposal is in line with Redefine’s strategy to recycle noncore assets to improve the quality of its asset platform and lower its loan-to-value ratio. The proceeds of the disposal will be used to repay debt,” the group said.
The sale is part of a broader trend where Reits are selling office properties amid weak market fundamentals to cut vacancies and focus on more resilient sectors. Growthpoint, Emira, and other Reits have disposed of several office assets in recent months as part of this shift.
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