South African shopping mall in the middle of a desert sold for R800 million
Hosken Consolidated Investments Limited (HCI) has sold its stake in Kalahari Mall in Upington, Northern Cape, for R800 million.
Hosken’s subsidiary, Kalahari Village Mall Proprietary Limited (KVM), is the beneficiary of a 90-year notarial deed of lease, which gives it the right to lease and operate Kalahari Mall.
KVM has now entered into a sale agreement to sell the rights, title, and interest in the mall to NAD Property Income Fund Proprietary Limited for R800 million, inclusive of VAT.
The group said that the disposal consideration will be used to settle taxes and KVM’s debt, with the entity’s debt funding at R249 million.
The remainder of the R800 million is intended to be distributed to KVM’s shareholders, including HCI, which holds an effective 64.78% interest in KVM.
The transaction is subject to the fulfilment of a number of conditions precedent, such as competition authority approval.
JSE-listed HCI said that the transaction is not notifiable from a categorisation perspective in terms of the JSE Limited Listings Requirements, meaning that no shareholder approval is required.
According to its website, Kalahari Mall is situated in residential suburbs of Upington and currently averages just under 300,000 shoppers per month.
Its tenants include Woolworths, Checkers, Truworths, Edgars, Clicks, Jet, Pep, Ackermans, Foschini, Spur, Game and Wimpy.
Upington is a historic town in South Africa, founded in 1873 and located in the Northern Cape on the banks of the Orange River.
The town is situated on the edge of the Kalahari Desert and experiences some of the most extreme weather in the country due to its hot desert climate.
The region frequently experiences some of the hottest temperatures in the country, often exceeding 40 degrees Celsius in the summer.
Kalahari Mall Images
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