Johannesburg-listed real estate investment company Putprop has agreed to buy the Kramerville letting enterprise for 124.5 million South African rand ($7.6 million). The deal expands the property fund’s footprint in one of Gauteng’s premier commercial and design hubs, according to a regulatory statement released on June 3.

The transaction involves acquiring a fully operational multi-tenant retail center from Tarloy Properties. Located at 17 Kramer Road, the three-story building includes all existing leases, rental income rights, and fixed assets. Putprop executives said the acquisition aligns with an ongoing strategy to secure stable, income-producing assets.

Kramerville purchase offers firm earnings base

The 6,253-square-meter property was fully occupied at the time of signing, with a weighted average rental of R180.06 per square meter. Current tenants include prominent design and decor brands like Streamlight, Handles Inc., and @Home, providing the property fund with an immediate and diversified revenue stream.

Closing the deal hinges on several standard conditions. Putprop must finish a due diligence review within 30 days and secure an R85 million ($5.2 million) commercial bank loan. Shareholders must also vote on the purchase at a general meeting within 60 days. An agent commission of R2.49 million ($153,000) is due upon property transfer.

Audited financial statements show the Kramerville business generated a net profit after tax of R10.16 million ($622,000) for the year ended February 28, 2026. The business carried a net asset value of R38.73 million ($2.4 million), offering a firm earnings base. Putprop will pay a 2.5 percent deposit once initial terms are met.

Divestments optimize real estate asset allocation

The acquisition comes as Putprop reshapes its portfolio under CEO Darryl Mayers. Putprop manages 13 properties valued at R1.1 billion ($68 million) across three provinces, serving 131 commercial and industrial tenants. To fund new purchases, the group recently agreed to divest from two non-core holdings in Gauteng for a combined R168 million ($10.3 million).

Those disposals include selling a 50 percent stake in Mamelodi Square for R148 million ($9.1 million) and offloading an industrial site in Dobsonville for R20 million ($1.2 million). The Dobsonville property, which spans 3,500 square meters, consistently outperformed its book value, posting a profit of R3.95 million ($243,200) in its last full financial year.