Aveng reaps R1.1bn for property

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Aveng Group, South Africa’s biggest infrastructure development company, announced on Thursday that it had sold the majority of its property portfolio to the Collins Property Group for R1.127 billion in a deal that looks set to lead to collaboration between the two.

Aveng, which earlier reported a 17 percent decline in revenue for the year to June, said it had sold 70 percent of Dimopoint, which holds 35 of its properties, to Collins Property’s Imbali Props 21 as part of its bid to strengthen its financial position and reduce debt.

In addition to the R1.1 billion cash injection, Aveng CEO Kobus Verster noted the retention of 30 percent of Dimopoint created opportunities for collaboration with Collins Group in South Africa as well as elsewhere in Africa.

Murray Collins, of the Durban-based, family-owned Collins Property Group, said the deal “adds significant and valuable stock to our commercial property portfolio” .

He added the company was “delighted to be able to partner with Aveng, which is one of Africa’s largest infrastructure groups”.

Published by - Business Report