Three South African shopping malls sold for R209 million

Collins Property Group is selling the Nquthu Shopping Centre, Ezulwini Royal Shopping Centre, and the Eyethu Junction Shopping Centre. It will use the money to fund investments in the Netherlands.

The Collins Property Group is a commercial property development and investment group involved in new developments and the refurbishment of existing properties.

The company was founded in 1904 as a family-owned steam joinery workshop, before evolving into a property development company.

The Collins Property Group currently has over 120 properties throughout Southern Africa and Europe and is actively working on its portfolio.

It is listed as a Real Estate Investment Trust on the Johannesburg Stock Exchange (JSE). Its share price has been relatively flat over the last five years.

On Thursday, Collins Property Group announced that its subsidiary, Imbali Props 21, has agreed to sell two of its shopping centres.

It is selling the Nquthu Shopping Centre and Ezulwini Royal Shopping Centre situated in Ulundi to Fairvest for R106 million.

Colkru Investments, a 90% owned subsidiary of Collins, has signed an agreement to sell its Eyethu Junction Shopping Centre to Fairvest for R103 million.

The net operating income of the Nquthu and Ulundi Properties and Eyethu for the twelve months ended 28 February 2025 is R9,590,962 and R9,830,718, respectively.

The Collins Property Group stated that these transactions are part of its strategy to recycle capital.  The net proceeds have been earmarked to fund investments in the Netherlands.

It said the purchase consideration attributable to each of the shopping centres is considered to be fair market value, as determined by the Collins directors.

The Collins Property Group said the transactions, when aggregated, constitute a category 2 transaction, which is not subject to shareholder approval.

The table below provides details about the purchase consideration attributable to each of the shopping centres.