HCI Sells 65% stake in Whale Coast Village Mall for R600 million

Hosken Consolidated Investments (HCI) said Wednesday it had agreed to sell its 65% shareholding in the Whale Coast Village shopping mall in Hermanus, Western Cape, for R600 million.

HCI's 80%-held subsidiary HCI-Whale Coast Village (HCI-WCV) had entered into a sale agreement to dispose of its 65% undivided share in the "Whale Coast Village Mall" rental enterprise.

Whale Coast Capital Investments Proprietary acquired a 40% stake and Whale Coast Village Mall Proprietary acquired the remaining 25% of the share in the mall.

HCI said the funds would be used to settle taxes and the debt funding owing by HCI-WCV to its debt funders, which was currently about R328m. The remainder of the purchase consideration was intended to be distributed by HCI-WCV to its shareholders, including HCI as to 80% thereof.

The transaction is subject to normal conditions being fulfilled, such as Competition Commission approval.

HCI's share price traded 0.7% lower to R150.44 on the JSE Wednesday afternoon, a price approximately the same as a year ago, this after the price fell to as low as R116.00 last September.

In December, HCI also announced the sale of Point Centre, Sea Point, Cape Town, to a company ultimately controlled by Steven Gottschalk for R943m, with the proceeds from this disposal destined to be used to settle HCI group debt and preference share funding obligations.

HCI had previously expressed its intention to dispose of certain of its real estate assets. In July last year, the South African Clothing and Textile Workers Union (SACTWU) lowered its stake in HCI as part of agreements that included the trade union buying three HCI properties, including Gallagher Estate, for R549.7m in total.

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