The Spar Group has disclosed that it booked a R30 million loss on the sale of its head office building in Pinetown.<\/p>\n
It originally announced its intention to sell the property in November 2024 in its annual results for the year, where it noted that it \u201cis in the process of selling non-core property assets, including the Pinetown head office, the Knowles shopping centre and the group\u2019s West Rand property, which will allow us to free up capital that will be used to reduce debt\u201d.<\/p>\n
Read:
Spar lifts earnings, but no dividend yet
Bloody nose for Spar as Europe write-offs top R7.5bn<\/p>\n
Zihle Nonganga, investor relations and communications executive at The Spar Group, confirmed to Moneyweb that its \u201ccorporate and Build it teams relocated to Umhlanga Ridge in November 2024\u201d.<\/p>\n
However, she noted that \u201cthe Southern Africa Grocery & Liquor operational teams remain in Pinetown\u201d.<\/p>\n
Spar share price<\/strong><\/p>\n The group\u2019s head office is now at the iconic mixed-use Umhlanga Arch development on Umhlanga Ridge. The 45 000m\u00b2, R2.2 billion development opened in October 2020, and is a joint venture between The Multiply Group and Devmco Group.<\/p>\n ADVERTISEMENT<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n Devmco is the main developer and master planner of the massive 1 000-hectare Sibaya Coastal Precinct along the M4 near eMdloti.<\/p>\n The mixed-use Umhlanga Arch development. Image: Supplied<\/p>\n<\/div>\n Listen\/read: Sibaya Precinct: Game-changer for Durban\u2019s property market?<\/p>\n Spar would not disclose how many employees moved to Umhlanga, but Moneyweb understands from a source in the sector that the number is likely around 100.<\/p>\n At the end of 2025, the group had just more than 4 600 permanent employees, the bulk of which work at its distribution centres, supply chain operations, as well as at its private-label supplier Spar Encore. This number also includes its corporate office and various divisional head offices.<\/p>\n Read: Spar to up its private label game<\/p>\n It is notable that the Build it head office team relocated but not the much larger Southern Africa Grocery & Liquor operational teams.<\/p>\n Financial optimisation strategy<\/strong><\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n In its annual financial statements from FY24, Spar disclosed that the carrying value of both assets (Knowles and the \u201cformer Central Office Building\u201d) was R221 million. The disclosure of the loss (one of four extraordinary items) referred to only \u201cthe head office\u201d and not Knowles. It is not known whether the loss was related to one or both.<\/p>\n Nonganga says that \u201cas part of its financial optimisation strategy, Spar executed a sale-and-lease-back of the Pinetown property\u201d. The Knowles SuperSpar, Tops at Spar, and Build it Pinetown remain trading at the well-known centre adjacent to the M17.<\/p>\n The new Spar leadership under chair Mike Bosman, CEO Angelo Swartz, CFO Reeza Isaacs (previously group finance director at Woolworths), and COO Megan Pydigadu has been focused on resolving legacy issues over the past two years and refocusing on its two core businesses in Southern Africa and Ireland.<\/p>\n Read: Key priorities achieved<\/strong><\/p>\n They have delivered on the three main priorities set out in 2024: portfolio simplification, financial strengthening, and operational discipline.<\/p>\n The group paid the purchasers in its exits of Poland and Switzerland (the former handsomely so). It has also announced its intention to exit its wholesale business in South-West England, Appleby Westward Group (AWG).<\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/p><\/div>\n<\/div>\n Swartz says \u201cthe closing of this complex chapter has enabled us to refocus capital for reinvestment in our core businesses. Moreover, our experience in these markets has affirmed our longstanding recognition that strong local management and in-depth knowledge of local market dynamics are essential. These principles will continue to shape our approach as we assess future opportunities\u201d.<\/p>\n The divestments have seen Spar strengthen its balance sheet, and it has reduced debt levels \u201csignificantly\u201d over the last 24 months.<\/p>\n Listen\/read: Listen to Ryk van Niekerk\u2019s interview with Spar CEO Angelo Swartz, originally aired on\u00a0RSG Geldsake in early December:<\/strong><\/p>\n![\"Umhlanga](\"https:\/\/www.moneyweb.co.za\/wp-content\/uploads\/2020\/09\/Umhlanga-Arch-Legacy-Yard-18-555x370.jpg\")
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Spar sells Swiss unit for R1bn
After Polish misadventure, Spar pays R683m to exit Switzerland<\/p>\n
Spar profit plummets R5bn on Swiss, English business sales
Spar turn around still a work in progress
Spar not looking for further expansion outside Southern Africa \u2013 Swartz<\/p>\n