Aveng sells properties worth R1.27bn
Construction group Aveng (AEG) said on Tuesday it has sold properties worth R1.27bn to reduce overall debt and improve the group’s financial position.
Aveng has agreed to dispose of 70% of Dimopoint‚ a special purpose vehicle created for holding the properties and which is wholly owned by Aveng Africa‚ to Imbali Props 21‚ an entity of the Collins property group. The transaction is to be settled in cash.
Aveng has elected to retain a 30% shareholding in Dimopoint and will jointly administer the properties with Collins for a market-related fee.
Aveng earlier announced a programme to dispose of noncore assets with the objective of raising at least R2.5bn. The sale of Electrix was concluded in September 2014.
At 4.44pm Aveng shares were 0.77% lower at R11.61.