Collins sells long-standing Trident steel sites in R650m deal

Collins Property Group will sell its properties in Durban, Roodekop and Gqeberha to Trident Steel for R649.7m.

The sales will be undertaken by subsidiary Dimopoint. Trident Steel has rented the sites for more than two decades.

The deal is part of Collins’ broader strategy to recycle capital, with the proceeds set to fund new investments in the Netherlands, the group said.

“The effective date of the transaction will be the date each property is transferred to Trident, with the relevant portion of the consideration to be paid in cash upon registration of transfer,” the group said in a statement on the Stock Exchange News Service. 

The properties in Roodekop are subject to a notarial tie with two other properties situated in Roodekop that Trident does not wish to buy — so-called take-back properties — which Dimopoint will retain under a 99-year usufruct, allowing the group to continue letting the sites and generate income.

After the notarial tie is removed — an agreement that links the take-back properties to other sites, preventing them from being sold separately — Trident will sell these properties back to Dimopoint for the same price.

The group said the deal is conditional on several conditions being met by the end of May, including Trident securing sufficient debt funding, providing the necessary property certificates and approval from Nedbank, which holds the mortgage bonds.

Additionally, Dimopoint also requires shareholder approval and Trident Steel has to sign off on lease assignments.

majavun@businesslive.co.za