Tongaat Hulett concludes R167 million deal to sell Umhlanga property
21-02-2020
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Fin24
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Sugar producer Tongaat Hulett [JSE:TON] says its subsidiary Tongaat Hulett Developments has concluded the sale of an Umhlanga Rocks property to Balwin Properties [JSE:BWN] for over R167.2m.
Tongaat, in shareholder notice, said the property is situated within the Izinga Precinct north of Umhlanga Ridge and above the town of Umhlanga Rocks. A portion of the property is zoned for the immediate construction of 335 residential apartments.
"The property is designed for clients looking for affordable living combined with the tranquillity of coastal life and a rich natural environment. The Property is minutes away from the commercial hub of Umhlanga," the notice said.
Balwin Properties intends to obtain rights for the construction of minimum of 1 286 residential apartments which will be built on the remainder of the property. According to a shareholder notice, all phases will be linked into a single development.
"The sale of the Property is aligned with the Tongaat Hulett Developments strategy of land conversion for residential and commercial development and in the ordinary course of its business," the notice said. Tongaat said some of the proceeds of the transaction will be used to repay debt.
Earlier this month the struggling sugar producer announced it may sell starch division
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