Delta Property Fund Sells Lexis Nexis Building for R37.375 Million

  • Delta Property Fund sells Lexis Nexis Building for R37.375 million to Icebolethu Funerals Proprietary Limited.
  • Proceeds of R32.5 million to reduce debt and lower Loan to Value (LTV) ratio by 0.2%.
  • Disposal categorized as a Category 2 transaction by JSE Listings Requirements, bypassing shareholder approval.

Delta Property Fund Limited has announced the sale of the Lexis Nexis Building. This building is located at 215 Peter Mokaba Road, Morningside, Durban. The buyer is Icebolethu Funerals Proprietary Limited. The sale price is R37.375 million.

Deal Details

Delta has entered into an agreement with Icebolethu Funerals. This agreement involves the disposal of the Lexis Nexis Building. The sale is part of Delta’s strategy to optimize its portfolio.

The net proceeds from the sale are expected to be R32.5 million. These proceeds will be used to reduce the company’s debt. The loan-to-value (LTV) ratio will drop from 60.9% to 60.7%. Additionally, the vacancy levels will decrease from 33.4% to 33.2%.

Purchase Agreement

The sale agreement outlines several key terms:

PurchaserIcebolethu Funerals Proprietary Limited
Sale PriceR37.375 million
DepositR1.6 million (non-refundable)
Balance PaymentR35.775 million secured by guarantees
Effective Transfer DateApproximately 30 September 2024
Approval TimelineWithin 120 days from the signature date

The deposit of R1.6 million has already been received. The balance is secured by acceptable guarantees. These guarantees are payable on the transfer date.

Conditions Precedent

The disposal is subject to several conditions:

  1. Payment of the non-refundable deposit.
  2. Purchaser’s board resolution authorizing the transaction.
  3. Seller’s board resolution authorizing the transaction.
  4. Compliance with JSE Listings Requirements and necessary approvals.

Financial and Property Information

The Lexis Nexis Building has a gross lettable area of 3,354m². As of 29 February 2024, the property had a 100% vacancy rate.

Property DetailsFigures
Location215 Peter Mokaba Road, Morningside, Durban
Gross Lettable Area3,354m²
Weighted Average RentalR0/m²
Net Operating Income (Loss)R(2.2 million)
Vacancy Rate100%
ValuationR32.7 million
SectorOffice – Other

The valuation was conducted by Riaan Fourie of CBRE. Fourie is an independent professional valuer.

Rationale and Strategy

Delta’s strategy includes disposing of non-strategic assets. The Lexis Nexis Building fits this category. The proceeds from this sale will help reduce Delta’s debt and improve its LTV ratio.

Terms and Conditions

The effective date of the disposal is anticipated to be around 30 September 2024. This date coincides with the expected registration of the property transfer.

The sale price includes Value Added Tax (VAT) at 15%. The guarantees for the remaining balance must be delivered within 45 days of the agreement’s signature.


Delta Property Fund is executing a strategic disposal of the Lexis Nexis Building. The sale to Icebolethu Funerals is set at R37.375 million. The proceeds will help reduce debt and vacancy rates. The transfer is expected by 30 September 2024. This move aligns with Delta’s strategy to optimize its portfolio.