Pareto secures full control of Sandton Convention Centre after Southern Sun exits $66 million deal

Pareto Limited has moved to take full control of one of Johannesburg’s most prominent conference and hospitality assets, securing 100 percent ownership of the Sandton Convention Centre along with the neighboring Sandton Towers and Garden Court Sandton City in a R1.1 billion ($66 million) deal with Liberty Group.

The purchase follows the withdrawal of Southern Sun from a previously planned partnership that would have seen the hospitality group acquire a major stake in the properties. Pareto, an unlisted property company backed by South Africa’s Government Employees Pension Fund, stepped in to exercise its pre-emptive rights as an existing shareholder, allowing it to proceed with the acquisition alone.

Pre-emptive rights reshape Sandton ownership

The transaction has already cleared regulatory review from the Competition Commission of South Africa, removing a key hurdle and paving the way for Pareto to complete the deal. Until recently, the ownership plan looked different. Pareto previously held a 25 percent stake in the Sandton assets alongside Liberty Two Degrees. In early February, Pareto announced plans to buy the remaining shares in partnership with Southern Sun for R1.1 billion ($66 million).

Under that arrangement, Southern Sun was expected to acquire a 50 percent interest valued at about R735 million ($56.1 million), while Pareto would raise its holding by another 25 percent. The structure would have left both companies as equal owners of the Sandton properties. That plan changed when Pareto invoked its contractual rights tied to its existing stake. Southern Sun confirmed the shift in a filing on the Johannesburg Stock Exchange, informing investors that it would no longer proceed with the purchase.

“Shareholders are advised that Pareto Limited has elected to exercise its pre-emptive right and therefore Southern Sun will no longer acquire an undivided share in certain Sandton Consortium Properties from Liberty Group Limited,” the company said in the filing. It added that the parties had agreed to terminate the negotiations.

Pareto moves to full Sandton ownership

For Pareto, the revised structure simplifies ownership of assets that sit at the center of Sandton, widely regarded as South Africa’s main business hub. Chief Executive Officer Malose Kekana said the overall value of the deal remains unchanged despite the change in structure.

“With Pareto exercising its pre-emptive right, the company will proceed independently with the transaction agreed with Liberty,” the firm said in a follow-up statement. Once completed, Pareto’s stake will rise from 25 percent to full ownership of the properties.

The deal covers some of the most visible commercial venues in Sandton. The Sandton Convention Centre hosts major international conferences, corporate meetings and exhibitions each year, drawing visitors from across Africa and beyond. The adjacent Sandton Towers and Garden Court Sandton City hotels serve a steady flow of corporate guests and event attendees.

The latest transaction does not include the Sandton City complex, one of Africa’s largest retail destinations. Pareto remains a minority investor in the mall, which also houses the Sandton Sun. Liberty, part of the Standard Bank Group, continues to hold 75 percent of Sandton City.

Southern Sun maintains strong regional footprint

Although Southern Sun has stepped away from the acquisition, it remains a major player in the region’s hospitality sector. The group operates more than 85 hotels, 250 conferencing venues and over 300 restaurants across Southern Africa, the Seychelles and the Middle East.

Its portfolio includes brands ranging from StayEasy and SUN1 to full-service properties under the Southern Sun Hotels, SunSquare and Garden Court names. The company also runs several well-known luxury destinations such as the Beverly Hills Hotel, Arabella Hotel Golf & Spa, 54 on Bath and Mount Grace Hotel & Spa.

In Sandton itself, the Southern Sun Sandton remains positioned along Rivonia Road with direct access to Sandton City, Nelson Mandela Square and the Gautrain station, serving business travelers and visitors attending events across Johannesburg’s financial center.