KWV offloads surplus property

Paarl-based wine and brandy producer KWV Holdings is offloading substantial tracts of surplus property in the Cape winelands. At the release of interim results this week, KWV CEO Thys Loubser disclosed that the company had sold its property in Robertson, as well as some land in Worcester.
The sales were post-balance sheet transactions, and would only be reflected in KWV's full-year results to end-June 2010.

On Thursday Loubser told Fin24.com the land sales were part of KWV's broader strategy to sell, close or fix underperforming assets. Last year KWV sold its grape juice concentrate plant in Upington to neighbouring Orange River Wine Cellars (OWC) for R70m.

Loubser said further land sales were being contemplated around Paarl, and that proceeds from the exercise could be substantial.

He would not be drawn on specific amounts, save to say that individual transactions could run into double-digit figures in terms of millions of rands.

The proceeds from land sales would add to KWV's cash pile, which at the end of 2009 stood at R210m.

Loubser said while KWV was busying itself with selling surplus properties, the company also needed to invest in icon properties like Laborie and corporate headquarters La Concorde.

Get commercial property news by email

Free alerts when we publish — pick a focus or get everything, unsubscribe in one click. Subscribe »