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Disposal of Letting Enterprises
Collins Property Group Limited
(Registration number: 1970/009054/06)
Incorporated in the Republic of South Africa
JSE Share code: CPP ISIN: ZAE000152658
(Approved as a REIT by the JSE)
("Collins" or "the Company")
DISPOSAL OF LETTING ENTERPRISES
1. Introduction
Shareholders are advised that Collins' wholly-owned subsidiary, Dimopoint Proprietary Limited
("Dimopoint") has entered into a series of inter-conditional agreements with Trident Property Holdings
Proprietary Limited (beneficially held by Deventon Property Investment Holdings Proprietary Limited and
Abfund Proprietary Limited) ("Trident") in terms of which Dimopoint will dispose of the properties situated
in Durban, Roodekop and Port Elizabeth which are leased to Trident Steel (the "Properties"), to Trident for
an aggregate consideration of R649,750,000 (inclusive of VAT at a rate of 0%) (the "Consideration") (the
"Transaction"). Trident Steel have operated from these properties for in excess of 20 years.
The Transaction forms part of Collins' strategy to recycle capital. The net proceeds of the Transaction have
been earmarked to fund investments in the Netherlands.
2. Terms of the Transaction
The effective date of the Transaction will be the date of registration of transfer of each of the Properties into
the name of Trident (the "Transfer Date"). The relevant portion of the Consideration will be paid in cash
against registration of transfer of each of the Properties into the name of Trident.
The Properties situated in Roodekop are subject to a notarial tie with two other properties situated in
Roodekop ("the Roodekop Properties") that Trident does not wish to acquire ("the Take-Back
Properties"). Accordingly, Dimopoint and Trident have agreed that:
- Trident will acquire all of the Properties as going concerns save for the Take-Back Properties in
terms of the Sale of Letting Enterprise Agreement;
- Trident will acquire the bare dominium of the Take-Back Properties, subject to a 99-year usufruct
in favour of Dimopoint over the Take-Back Properties ("the Usufruct") in terms of the relevant Sale
of Property Agreement. The Usufruct will entitle Dimopoint to retain the right to use and derive all
benefits and income from each Take-Back Property, including all rights to rentals receivable.
Dimopoint will also retain ownership of all cranes, gantries and sundries situated at the Take-Back
Properties;
- Dimopoint will apply for the establishment of an industrial estate on the Roodekop Properties and
remove the notarial tie; and
- Upon removal of the notarial tie, Trident will sell the Take-Back Properties back to Dimopoint for
the same consideration.
The Transaction remains subject to the fulfillment by 31 May 2025 of the following conditions precedent:
- receipt of confirmation from Trident's financiers that Trident has raised sufficient debt funding to
complete the Transaction;
- the delivery to Trident's financiers of any property certificates that may be required;
- the receipt of Nedbank's consent, in its capacity as the holder of mortgage bonds over the
Properties;
- the approval by the sole shareholder of Dimopoint in accordance with sections 112 and 115 of the
Companies Act 71 of 2008;
- all agreements comprising the Transaction are unconditional;
- the receipt of Trident Steel's written consent to:
- the assignment by Dimopoint to Trident of Dimopoint's rights and obligations under the
lease agreement between them in relation to the Properties other than the Take-Back
Properties; and
- the retention by Dimopoint of its rights and obligations under the lease agreement in relation
to the Take-Back Properties;
- Dimopoint will in terms of a repair costs agreement pay R32,814,286 (excl. VAT) to Trident Steel
for the cost of repairs to the Properties other than the Take-Back Properties on the Transfer Date;
and
by 31 July 2025:
- the receipt of all regulatory approvals for the Transaction, including those of the Competition
Commission and/or Competition Tribunal.
The directors are confident that these conditions precedent will be met ahead of the due dates.
The agreements for the Transaction contain terms, undertakings, warranties and indemnities which are
normal for a transaction of this nature.
3. Property specific information
Property name Location Sector GLA (m2) Weighted Purchase
average price
rental attributable
(R/m2) to each
Property (R)
Durban, KwaZulu
Durban Property Natal Industrial 9,767 80.33 87,000,000
Gqeberha (Port
Elizabeth),
Port Elizabeth Property Eastern Cape Industrial 30,193 45.84 147,750,000
Germiston,
Roodekop Properties Gauteng Industrial 120,178 48.67 415,000,000
Germiston,
Take-Back Properties Gauteng Industrial 34,283 54.32 2,000
The Consideration is considered to represent fair market value, as determined by the directors of Collins.
The directors of Collins are not registered as professional advisors or as professional associate advisors in
terms of the Property Valuers Profession Act, No 47 of 2000.
4. Financial information
The value of the net assets which are the subject of the Transaction, as at the Transfer Date is
approximately R616,935,714. The net operating income (excluding straight-lining rental income
adjustments) of the Properties, based on the unaudited financial statements of Collins (prepared in terms
of IFRS) for the six months ended 31 August 2024, is R43,593,621.
5. Categorisation of the Transaction
The Transaction is categorised as a Category 2 transaction in terms of the JSE Listings Requirements and,
as such, is not subject to shareholder approval.
Cape Town
9 May 2025
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 09-05-2025 10:33:00
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