CAPE TOWN -  Basil Read, the construction group in business rescue, said yesterday it had entered into agreements to sell properties, last valued at R176 million, in Ekurhuleni Metropolitan Municipality.

The book value of the properties held by Thunderstruck Investments, a joint venture between Basil Read Limited, which is in business rescue, and Basil Read Holdings, was R176 million in the last set of audited annual financial statements for the year ended December 31, 2017, a statement said Wednesday.

Net profit for these properties for that financial year was R18 million. The Basil Read group paid rent of R35.9 million, for the occupation of the Thunderstruck properties, and R3.7 million for utilities expenses for the financial year ended December 31, 2017.

The properties in Ekurhuleni, representing 2.5 percent of the groups assets, were being sold for R136m. Proceeds would be used to settle Thunderstruck’s liabilities and the balance would be distributed to shareholders.

The group said it had not been able to publish financial results for the reporting periods after the 2017 year end, due to the business rescue proceedings.

“The suspension will remain in place until the implementation is complete and the effects on the group can be determined,” the group said.

BUSINESS REPORT