Paardevlei Properties Proprietary Limited (“Paardevlei”), a wholly-owned subsidiary of AECI, and the City of Cape Town (“the City”) have entered into an agreement in terms of which the City will acquire 709 hectares of land, and certain buildings, of the total 734 hectares of land owned by Paardevlei in Somerset West, Cape Town (“the Transaction”). These assets have become surplus to AECI’s and Paardevlei's operational requirements.
The Transaction is for a cash consideration of R400 million (plus VAT if applicable). It excludes Precinct 1, which is 25 hectares in extent and was valued at R119 million by the Standard Bank Property Group in 2014.
The Transaction is subject to approval by the Competition Commission of South Africa.
5 June 2015
Sponsor: RAND MERCHANT BANK (A Division of FirstRand Bank Limited)
Legal advisors to AECI - Webber Wentzel