Picture: 123RF/WASTE SOUL
Picture: 123RF/WASTE SOUL

Infrastructure development group Raubex has sold off its property interests for R383m to private equity firm Acorn Black Investments (ABI).

Raubex’s subsidiary, Raubex Property Investments, has a commercial and residential property portfolio that the group has designated as non-core assets.

Raubex will realise profit of R56.7m on the disposal after tax. The company had not previously received profit from its subsidiary, as rental income of R32.5m had been used, in toto, to pay off interest costs of the subsidiary’s debt.

The proceeds from the sale will be used to strengthen the cash reserves of the company, Raubex said.

The properties were leased to various Raubex subsidiaries, as well as third parties, and after the disposal Raubex will enter into a 12-year, triple-net lease with ABI based on an 8.75% yield.

Triple-net leases require the tenant to pay all the expenses of the property, such as maintenance, insurance and real estate tax.

ABI is a black woman-owned private equity group, which targets investments in the healthcare, education, services and property sectors.

In morning trade on Friday, Raubex’s share price had fallen 2% to R21.07, having risen 17.06% over the past 12 months. The company had a market capitalisation of R3.8bn on Friday.