South Africa’s Putprop sells Pretoria asset for $1.8 million in portfolio reshuffle

South African real estate firm Putprop Limited has agreed to sell an industrial property in Pretoria for R29 million ($1.6 million), as it moves to streamline its portfolio and redeploy capital into higher-yielding assets.

The property, located in Montana Park, was sold to Bluhire Proprietary Limited, a firm wholly owned by businessman Hermanus Gerhardus Brink. The buyer is not a related party to Putprop.

Portfolio optimization strategy

The disposal aligns with Putprop’s broader strategy to exit non-core assets and reinvest proceeds into income-generating properties, reinforcing its focus on enhancing returns from its real estate portfolio.

Proceeds from the transaction will be directed toward new property investments aimed at strengthening recurring income streams.

Asset details and valuation

The property, measuring 8,544 square meters, comprises warehouse and office space with a total rentable area of 3,640 square meters. At the time of the agreement, it generated a weighted average rental of R56.3 ($3.42) per square meter.

Although zoned for special use under local planning regulations, the asset has been operating as an industrial facility. An independent valuation conducted by Spectrum Valuations and Asset Solutions placed the property’s value at R22 million ($1.34 million) as of June 30, 2025, indicating a premium in the agreed sale price.

Transaction structure

Under the terms of the deal, the purchaser will pay a R1.45 million ($88,117) deposit following the fulfilment of conditions precedent, with the remaining R27.55 million ($1.68 million) to be settled upon transfer of ownership.

The transaction remains subject to standard conditions, including the agreement becoming unconditional and the completion of a due diligence process within 21 days of signing.

Putprop will transfer possession and associated risks to the buyer upon registration, while tenant-related balances and deposits will be settled in line with standard property transaction practices.

Financial performance of the asset

The property contributed R2.88 million ($175,038) in profit after tax for the year ended June 2025, with an additional R1.03 million ($62,592) recorded in the six months to December 2025.

Its net asset value stood at R22 million ($1.34 million) across both reporting periods, based on audited and interim financial statements prepared under International Financial Reporting Standards.

Deal classification

Putprop owns 13 properties with 131 tenants with a total GLA of 88,042 square meters and investment property of R1.096 billion ($66.6 million).

The transaction is classified as a Category 2 disposal under the JSE Listings Requirements, meaning it does not require shareholder approval. The deal was announced on May 22, 2026, with Merchantec Capital acting as sponsor.