Tongaat eyes returns from farmland transformed by developers
Had agro-processing company kept stakes in plots sold around burgeoning areas, its dire situation would be much different today
Embattled agro-processing company Tongaat Hulett has changed its strategy for its multibillion-rand property portfolio, moving away from outright disposal of its assets in favour of leasing or partial sale. This will ensure stable income through dividends and rentals.
The move is part of various steps Tongaat is taking to improve its financial position and reduce its debt, which stood at R11.4bn in the year ended March 2019. Other measures include reducing capital expenditure and disposal of assets.