Texton Property Fund’s share price leapt 13.7% to R2.40 yesterday morning after it announced the sale of Alrode Industrial Park for R50 million.
The cash disposal to Benav Properties was because Texton had a limited exposure to industrial properties and had decided to exit the sector to focus on repurposing its office assets, the company said in a statement.
The disposal proceeds would be used to repay debt and invest to further develop its SME strategy.
In addition, the recycling of capital would provide flexibility for future opportunities to diversify investment into other asset classes that appeared attractively priced, the group said.
The owners of Benav Properties Proprietary are the Rimon Trust, the Noless Trust and Mameshly Trust.
The unaudited net rental income attributable to the property for the six months ended December 31, 2022 was R2.27m.
BUSINESS REPORT