JSE-listed Sycom Property Fund announced on Thursday that it has entered into an agreement to sell the Discovery Building in Sandton to The Truzen 113 Trust for R413.9 million.
Sycom took the decision to dispose of the property in order to mitigate the risk of a substantial future vacancy, should Discovery Health, the office property’s single tenant, decide to vacate at the end of their current lease. Discovery had indicated in June last year that the available space at the property was not sufficient for its future needs.
The disposal of the building is still awaiting approval from the Competition Authorities. The effective date of the disposal is currently estimated to be 1 February 2014.
According to Sycom, the proceeds from the sale of the property will be utilised to fund future developments and acquisitions.