July 7 2026 10:31
SANDTON CONVENTION CENTRE
Southern Sun and Pareto acquirer some Sandton properties for R1.1bn.
The properties include The Sandton Towers, Garden Court Sandton City, Sandton Convention Centre and the Virgin Active Sandton.
They are part of a consortium of properties which were owned by Liberty and Pareto in a 75/25% split. Following the deal, the properties would be owned by Southern Sun and Pareto in a 50% split.
Southern Sun operates the Sandton Sun, Sandton Towers, Garden Court Sandton City and the Sandton Convention Centre under long-term lease and management contracts for Liberty Group and Pareto.
The Virgin Active Sandton is leased to the Virgin Active Group.
Liberty is a wholly owned subsidiary of the Standard Bank Group, and Pareto is 100% owned by the Government Employees’ Pension Fund, which is managed via the Public Investment Corporation (PIC).
Sandton Sun hotel, which is not situated on the target property, will continue to be owned by Liberty and Pareto in their existing proportions of 75% and 25% respectively, with Southern Sun continuing to operate the hotel under a long-term lease agreement.
Southern Sun said the acquisition made sense because it owns 85% of its total hotel portfolio, either through freehold or leasehold title.
“The proposed transaction aligns with Southern Sun’s strategy to strengthen its portfolio of high-quality, strategically located assets in key metropolitan nodes and presents an opportunity to increase the group’s freehold exposure to world-class hospitality assets alongside long-standing partners,” it said.
The aggregate value of Liberty’s 75% interest in the Target Assets is R1.102bn, with Southern Sun’s 50% share equating to R735m, payable in cash from available debt facilities.
The total valuation of the assets is R1.435bn, with the last independent valuation conducted as at December 31 2024.
The audited profit of the assets for the 12 months to end-December 2024 was R153m.
247@propertyflash.co.za
