Tongaat offloads Umhlanga property for R167m
The embattled sugar producer, which is urgently trying to reduce debt, has sold property to Balwin
Embattled sugar producer Tongaat Hulett, which wants to reduce its SA debt by R8.1bn by March 2021, said on Friday it had sold property in Umhlanga for R167m.
The sale of 64ha to Balwin comes after the company said earlier in February it may sell its starch business as it battles a R13bn debt pile.
A portion of the Umhlanga property is already zoned, and would be used for the immediate construction of 335 residential properties. Balwin intends to obtain rights for a minimum of 1,286 residential apartments.
Tongaat Hulett’s subsidiary, Tongaat Hulett Developments, had been negotiating with Balwin since 2018, and the land is the last remaining significant portion of developable land with an Umhlanga address, the sugar producer said on Friday.
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