Bonatla to bulk up on property

Posted On Friday, 07 September 2007 02:00 Published by eProp Commercial Property News
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Property company has entered into acquisition agreements for three property transactions totalling more than R40m

BonatlaProperty company Bonatla Property Holdings, which requested a voluntary suspension of trade in its shares on the JSE in July, said yesterday it had entered into acquisition agreements for three property transactions totalling more than R40m.

The transactions will increase Bonatla’s property asset base to about R75m.

In terms of the suspension, no trading in the company’s shares is allowed until Bonatla concludes one or more property transactions to meet the JSE’s listings requirements.

Last October, Bonatla announced it did not meet JSE listing requirements and undertook to conclude a property transaction in order to meet the requirements within six months. After missing the deadline, Bonatla asked the JSE to suspend it until one or more of these transactions had been concluded.

The JSE suspended Bonatla in February 2004 because it posted financial statements late and did not have the requisite four directors.

In October last year, the company applied to have its listing reinstated. The JSE gave the company six months to inject suitable assets into the company. The JSE said Bonatla had in effect been a shell company with a positive net asset value.

Bonatla CEO Robin Rainier said management was now injecting revenue-enhancing assets into the company. “These include two properties with rental income,” he said.

One of the properties being acquired is an office property in Pietermaritzburg that houses a company of civil engineers. Another is a “factory/warehouse” in Pinetown tenanted by a public company.

The total consideration for these two properties is R27m.

Bonatla has also entered into an agreement to acquire a 51% interest in unlisted public company SA Growth Property Group for R14,1m. SA Growth also holds property. All of these property transactions will be settled by way of the issue of Bonatla shares.

But a number of other property transactions that Bonatla had been planning have lapsed, including the original transaction involving the acquisition of the Durban Point Development.

The proposed waterfront development deal, which was announced in January, would have seen Bonatla in effect buying half the shares in the Durban Point Development for R150m, allowing Malaysian company Renong to withdraw from SA.

The original sale agreement, dated January 8, showed that the deal would be structured in such a way that Renong would sell its entire investment in Renong SA, whose main asset is 80,4% of a company called Rocunion, to Bonatla. Rocunion owned 100% of Rocpoint, which in turn owned half of the Durban Point Development Company.

Rainier confirmed that the Durban Point deal “as it was previously announced” had lapsed. But he said negotiations were under way and that an announcement would be made in due course.

“Bonatla is still negotiating with a view to acquiring it,” Rainier said.

Bonatla, which also published its interim results for the six months to March yesterday, reported a loss of R1,8m for the period.

Last modified on Wednesday, 23 April 2014 13:01

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