Southern Sun and Pareto move to acquire Liberty's shares of Sandton properties
JSE-listed hospitality and leisure group Southern Sun has proposed nonbinding terms to acquire 50% of the shares of the Sandton Towers, Garden Court Sandton City, Sandton Convention Centre and the Virgin Active Sandton properties from JSE-listed financial services and investment management firm Liberty Group.
Southern Sun currently operates the Sandton Sun, Sandton Towers, Garden Court Sandton City and the Sandton Convention Centre properties under long-term lease and management contracts for Liberty.
Liberty owns 75% of the shares of the properties, while property investment management company Pareto, which is owned by the Government Employees Pension Fund, owns 25% of the shares of the properties.
Pareto will increase its share of the properties to 50% and Southern Sun will acquire the remaining 50%, if the proposed transaction is completed, Southern Sun says.
The aggregate value of Liberty's 75% interest in the target assets is R1.1-billion and Southern Sun's 50% share equates to R735-million, which is payable in cash from available debt facilities.
The aggregate valuation of the target assets as at December 31, 2024, which is the last available independent valuation, was R1.44-billion, with Liberty's 75% interest equating to R1.08-billion.
The audited profit of the target assets for the year ended December 31, 2024, was R153-million.
However, the Sandton Sun hotel will continue to be owned by Liberty and Pareto, and Southern Sun will continue to operate the hotel under a long-term lease agreement.
Meanwhile, Southern Sun owns, either through freehold or leasehold title, 85% of its total hotel portfolio.
The proposed transaction aligns with Southern Sun's strategy to strengthen its portfolio of high-quality, strategically located assets in key metropolitan nodes, and presents an opportunity to increase its freehold exposure to world-class hospitality assets alongside long-standing partners.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Latest Multimedia
Latest News
Showroom
As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...
VISIT SHOWROOM
AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
