Afrirent Holdings Acquires Majority Stake in High Street Auctions

Afrirent Holdings has acquired a 51% stake in High Street Auctions, enhancing its market presence and BBBEE credentials for government opportunities.

• Strategic Acquisition: Afrirent Holdings acquires a 51% stake in High Street Auctions, enhancing its diversification strategy within the South African economy.
• Asset Disposal Channel: The acquisition enables Afrirent to streamline the disposal of returned fleet vehicles, maximising value throughout the asset lifecycle.
• Expansion Plans: High Street Auctions aims to open offices in six provinces, expand into the SADC region, and launch a yellow metal disposal department.

Afrirent Holdings Expands Portfolio with High Street Auctions Acquisition

Afrirent Holdings, a 100% black-owned and managed group specialising in mobility, energy, leisure, and gaming, has announced its acquisition of a 51% stake in High Street Auctions for an undisclosed amount. This strategic move is part of Afrirent’s broader diversification and expansion strategy within the South African economy.

Established in 2003, Afrirent Holdings has developed a multidisciplinary approach, offering specialised expertise across transport and logistics, environmental services, tourism, and gaming. As a 100% black female-owned business, Afrirent is uniquely positioned to partner with both public and private entities, making it an ideal fit for High Street Auctions’ goals.

Senzo Tsabendze, Executive Chairman of Afrirent Holdings, expressed enthusiasm about the investment, stating, “We are very excited about our investment into High Street Auctions. They are a quality business with a demonstrable track record of success, and we believe they will add immense value to our business and long-term value creation.” He emphasised that this acquisition aligns with Afrirent’s objective to diversify into complementary sectors.

A key motivation behind the acquisition is the creation of a streamlined channel for disposing of Afrirent’s fleet vehicles, which are returned monthly as contracts end or fleets are replenished. With approximately 150 vehicles returning each month, this acquisition allows Afrirent to participate fully in the asset lifecycle, maximising value when these vehicles are sold after their client usage.

High Street Auctions, founded in 2010, has established itself as a premier marketplace for the sale and purchase of property in South Africa. The company specialises in commercial, industrial, retail, and residential properties, making it a leader in the property auction market. High Street Auctions is recognised for its extensive market knowledge, professional expertise, and world-class auction events, having successfully managed valuable real estate transactions for both listed and unlisted clients.

Afrirent Holdings Strengthens High Street Auctions’ Market Position

As the majority shareholder, Afrirent will enhance High Street Auctions’ BBBEE credentials, positioning the company as a significant player in asset disposal for government entities and municipalities. This builds on High Street Auctions' existing collaborations with prominent clients such as the City of Tshwane and the City of Cape Town.

High Street Auctions also has ambitious expansion plans, including opening offices in the six remaining provinces of South Africa where it currently lacks a presence, expanding into the SADC region, and establishing a new yellow metal disposal department. Greg Dart, Director at High Street Auctions, highlighted the partnership as an exciting evolution for the business, noting, “There is a wonderful alignment with the corporate culture of our new partners, an essential dynamic when considering such a transaction.”

Furthermore, the enhanced BBBEE profile will enable High Street Auctions to actively pursue public sector opportunities, allowing them to bid on government tenders as they arise.

With this acquisition, Afrirent Holdings and High Street Auctions are poised to leverage their strengths to create significant value in the South African market and beyond.