TEXTON SELLS ITS WOODMEAD COMMERCIAL PARK IN JOHANNESBURG FOR R132.5M

TEXTON Property Fund, a JSE real estate investment trust, said on Friday that it was selling its Woodmead Commercial Park retail asset for R132.5 million. Directors said the company had entered into an agreement with Benav Properties on May 12 to dispose of Woodmead Commercial Park in Woodmead, Johannesburg. Texton had received an offer for the property at a premium to its last disclosed book value. Also, post the sale of the Golddurb Retail Asset announced on December 10, 2021, Texton has limited exposure to retail assets in its direct property portfolio. “As such the board has decided to exit the sector to focus on repurposing its office assets and pursue its SME strategy,” a statement said. Proceeds of the sale would be used to repay debt and invest in the SME strategy. “Furthermore, the recycling of capital will provide flexibility for future opportunities to diversify investment into other asset classes which appear attractively priced,” they said. The R132.5m would be settled in cash and with the provision of a R20m vendor loan. The unaudited net rental income attributable to the property for the six months ended December 31, 2021, was R6.84m. | Edward West