Octodec has struck a deal to sell Johannesburg’s Killarney Mall, which has been on the market for several years.
The group has agreed to dispose of the mall for R397.5m to private player AJPG Property 1.
The mall, at 60 Riviera Rd, Killarney, has been operating for more than 45 years with a mix of retail and office spaces.
“Management has deemed Killarney Mall noncore and the sale forms part of a broader strategy to recycle capital into projects aligned with Octodec’s revised vision. Proceeds from the sale will be used to reduce debt and support future developments,” the group said.
Killarney Mall and Hyde Park Corner have both been on the market for some time. A previous sale of Hyde Park Corner, owned by Hyprop, to private buyer Millennium Equity Partners fell through.
The sale of Killarney Mall is contingent on standard conditions, including the purchaser’s due diligence, bank guarantees, Nedbank mortgage releases and approval from competition authorities.
The final cash payment will only be made once all conditions are met with working capital adjustments at transfer, it said.
Octodec said it is satisfied that the R397.5m sale price reflects fair market value. The mall’s latest valuation was R407.6m, according to the group’s audited statements. It carries net liabilities of R38.6m but made a profit of R16.6m.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.