Acsion raises hotel contract value above $1 million

Acsion Limited, the South African-listed construction and property group, has approved variation orders totaling R17.21 million ($1 million) on an existing hotel construction contract, marking a small related-party transaction under JSE Listings Requirements.

The variation orders, effective from February 19, 2025, to August 15, 2025, increase the total contract value to R104.75 million ($6.28 million), excluding VAT and will be managed through Hey Joe, a wholly owned subsidiary of Acsion, for the construction of 69 hotel units.

Related-party oversight
These adjustments arose as part of the ordinary process of finalizing the construction work and do not represent a new agreement or addendum between the parties. Payments will continue in cash based on monthly interim certificates issued by the principal agent, with Hey Joe having already settled R87.54 million ($5.25 million) to date.

The construction contractor, KAP, is beneficially owned by Acsion CEO Kiriakos Anastasiadis and his family, making the transaction a related-party engagement.

Under JSE Listings Requirements, small related-party transactions do not require shareholder approval but must be independently assessed for fairness. Acsion with a market capitalization of over $285 million, appointed Merchantec Capital to provide a Fairness Opinion, which confirmed that the terms of the variation orders are fair to shareholders.

Availability of Fairness Opinion
Acsion Limited, headquartered in Johannesburg, has evolved into a global real estate powerhouse under the leadership of Kiriakos Anastasiadis. Established in 2014, Acsion boasts a diversified investment portfolio with a focus on capital returns.

With an extensive 260,573m² in South African Property Operations, 6,007m² in South African Hospitality Operations, and 39,160m² in Foreign Property Operations, Acsion is a leader in retail properties, community and commercial projects, hotels, conferencing, and property and asset management services. Anastasiadis owns a controlling stake of 77.48% in the Johannesburg-based property giant.

The board emphasized that the variation orders reflect routine adjustments in the execution of the hotel construction project and align with Acsion’s broader strategic focus on delivering high-quality property developments while maintaining compliance with corporate governance standards.