Nictus on Wednesday advised the finalisation of negotiations for the disposal of its shareholding in Corporate Properties, to Erastus Shipumba Properties for R22.2 million.

Corporate Properties is a wholly owned subsidiary owning an office building in Windhoek, Namibia leasing out office space to group companies.

"This disposal provides the group with the opportunity to upgrade current properties held to achieve longer term growth potential and thus the funds emanating from the transaction will be applied for development of property held elsewhere in the group. These investments in the other properties of the group, will lead to better utilisation and profit growth in future," Nictus said.

The agreement is subject to the fulfilment of conditions, such as shareholder approval and the approval by the Competition Commission of Namibia on or before November 30.