Aveng Group notches R1.1 billion from property sales

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Construction group Aveng (AEG), on Thursday announced it had concluded the sale of the majority of its property assets to the Collins Property Group for R1.127 billion.

After reporting a 17% decline in revenue, Aveng has disposed 70% of Dimopoint to Collins Property’s Imbali Props 21 as part of its bid to strengthen its financial position and reduce debt.

The properties included most of Aveng’s regional offices and manufacturing properties, with the exception of Jet Park in Boksburg. Late last year Aveng relocated its corporate head office to the Jet Park campus, which also houses Aveng Grinaker-LTA.

This property transaction forms an important part of Aveng’s plan to strengthen its financial position and reduce debt.

“With a stronger balance sheet and improved liquidity, we are now well placed to strongly drive Aveng’s medium term strategy, thus positioning the group for future profitability,” says Aveng Group CEO Kobus Verster. 

In addition to the R1.1 billion cash injection, the transaction with Imbali Props 21 is significant for other reasons. With Aveng retaining 30% of Dimopoint, there are opportunities for Aveng and the Collins Group of companies to partner in the future. “We may consolidate and upgrade some of the properties in the Dimopoint portfolio and also see good opportunities to partner elsewhere in Africa,” says Verster.

“We are pleased to have concluded this transaction as it adds significant and valuable stock to our commercial property portfolio. We are also delighted to be able to partner with Aveng, which is one of Africa’s largest infrastructure groups.” says Murray Collins of the Collins Property Group.

Managing Executive of Investment Banking at Nedbank CIB, Brad Maxwell said the bank is proud to have partnered with Aveng and the Collins Group by acting as corporate advisor and sole funder to this transaction.

Based in Durban, Collins Property Group has been run by four generations of the Collins family over more than a century. Through its association with JSE-listed Tradehold, the group has developed and owns a multi-billion rand portfolio of mostly commercial properties throughout Southern Africa. Most of the properties developed are retained as part of the group’s property portfolio, with tenants including leading blue chip clients.

By SA Commercial Prop News