Octodec has sold Killarney Mall, South Africa’s oldest shopping centre, after years of seeking a buyer for the Johannesburg property, as the group looks to free up capital and pay down debt.
The group said on Thursday that the sale had cleared its final hurdles after securing Competition Commission approval, with the mall transferred to private buyer AJPG Property 1 on November 2.
The group agreed to sell the mall in February for R397.5m through the sale of all the shares and claims in its wholly owned subsidiary, Killarney Mall Properties. The proceeds will go towards reducing borrowings and funding the group’s strategic priorities, it said.
Octodec deputy CEO and financial director Riaan Erasmus said the sale was an important step in the group’s efforts to reshape its property portfolio and focus on assets with better growth prospects.
“The completion and transfer of Killarney Mall represents a significant milestone in Octodec’s strategy to focus and strengthen the business,” Erasmus said.
He said the disposal allowed the group to redirect capital from assets that were no longer central to its strategy towards properties and sectors with greater potential to deliver sustainable returns.
Business Day
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