But Southern Sun exits proposed deal with Liberty Group, after Pareto exercised its pre-emptive right on the properties.
Pareto Limited – the unlisted property giant effectively owned by the Government Employee’s Pension Fund (GEPF) – has secured full control of the landmark Sandton Convention Centre (SCC) and neighbouring Sandton Towers and Garden Court Sandton City hotels in a plum R1.1 billion deal with Liberty Group.
The deal has already secured Competition Commission approval Pareto CEO Malose Kekana told Moneyweb on Wednesday. However, the transaction no longer includes JSE-listed Southern Sun, which operates the SCC and hotels for Standard Bank Group subsidiary Liberty and Pareto.
Ownership
Pareto previously owned 25% of the properties with Liberty Two Degrees, and announced on 3 February that it would buy the balance for around R1.1 billion together with Southern Sun. However, that deal included Southern Sun taking 50% for around R735 million and Pareto a further 25% for the balance of the deal amount. This would have meant Pareto and Southern Sun would have each owned a 50% stake
Southern Sun said this week in a short JSE filing that it is no longer part of the deal, after existing shareholder in the properties Pareto decided to exercise its pre-emptive rights.
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Pre-emptive rights
In the Sens update titled ‘Termination of the Proposed Transaction to Acquire a 50% Undivided Share in Certain Sandton Consortium Properties’ – Southern Sun said: “Shareholders are advised that Pareto Limited has elected to exercise its pre-emptive right and therefore, Southern Sun will no longer acquire an undivided share in certain Sandton Consortium Properties… from Liberty Group Limited.”
It said the parties have “terminated negotiations”.
“Nothing has changed in terms of deal value as previously announced,” Kekana told Moneyweb, adding that the new deal effectively means Pareto has secure 100% ownership of the properties.
He later sent an official statement from Pareto.
“We refer to the Sens announcement issued by Southern Sun on 9 March 2026. As indicated, Pareto Limited has opted to exercised the pre-emptive right in terms of the sale by Liberty Group Limited of Sandton Towers, Sandton Convention Centre, and Sandton Garden Court,” it said.
An existing shareholder of Sandton City
“Accordingly, Pareto will proceed on its own with the conclusion of the transaction as agreed with Liberty. Pareto’s ownership of these properties will as a result increase from 25% to 100% undivided share,” the statement added.
Pareto is an existing minority shareholder in Sandton City shopping centre (including the Sandton Sun hotel housed on part of the mall), however, the super-regional centre is not part of this deal.
Liberty/Standard Bank Group is still the majority shareholder of Sandton City, with around a 75% stake.
This article was republished from Moneyweb. Read the original here.
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