Hosken Consolidated Investments Limited (HCI) has agreed to sell its Sea Point, Cape Town, shopping centre, The Point Mall, to Future Indefinite Investments in a deal valued at R943m.
The sale is being carried out through HCI’s subsidiary, Permasolve Investments, which owns and operates the property. The transaction includes the property itself, all improvements, tenant leases and fixtures and fittings, effectively transferring the entire rental enterprise. The Point hosts a mix of commercial and retail tenants. HCI owns 70.59% of Permasolve.
The company said the disposal aligns with its previously communicated strategy to divest certain real estate assets. The proceeds from the sale are expected to first settle Permasolve’s borrowings and tax obligations, with the remaining funds used to reduce HCI’s group debt and preference share funding obligations.
HCI said the transaction will generate a substantial return on investment and strengthen the group’s cash-flow position.
On September 30, the net assets of the rental enterprise were valued at R188.3m, while the profit after tax for the six months ending on that date was R5.47m.
The transaction will take effect on registration of the transfer of the property into the buyer’s name, which is expected in the second quarter of next year.
HCI has included provisions to mitigate delays: if transfer registration does not occur by September 30 next year due to the buyer or its funder, the buyer will be liable for monthly interest payments of R2.55m from October to December next year and R5.11m per month thereafter.
The company has a diverse portfolio spanning multiple sectors of the South African economy, including hotel and leisure, interactive gaming, media and broadcasting, transport, mining, property, manufacturing, and financial services.
By market close, HCI’s share price was 5.95% firmer at R139.67.
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