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Don Group moves from hotels to property management

10 Oct 2011

The Don Group has confirmed that it would sell some of its self-catering suite hotels to pay off debt and then convert the rest of them into fully-furnished rental accommodation units according to an article published in Business Report.

Business Report says that the Don Group will remain an integral part of the tourism sector through its 57% shareholding in iKapa Tours and Travel, which will continue to operate as an autonomous tour operator.

The decision to switch from hotels to property management was taken because of the tough trading conditions that have been experienced by the Don Group over the past two years. The group posted a R35,7-million loss for the year to June and this follows a loss of R2,5-million the year before.

The revaluation of the properties - in the light of the change of use - resulted in a net devaluation of R17,5-million increasing the overall loss for the group to R53,2-million.

According to Don Group, three properties in Arcadia, Bruma and Sandton were already operating as residential apartments while another nine properties in Sandton, Bruma, Illovo and Rosebank in Johannesburg, Arcadia in Pretoria and Sea Point in Cape Town were either being sold or would be converted to rental agreements.

Read the full article on www.iol.co.za.
Read the full article on www.businesslive.co.za.