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Mpact disposes of Versapak Paarl property for R185m

18th September 2026

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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JSE-listed paper and plastics packaging and recycling company Mpact has disposed of its Versapak Paarl property to joint venture (JV) Inofort for R185-million.

The 29 541 m2 property is on the corner of Borssenberg street and Jan van Riebeeck drive, in Paarl, in the Western Cape. Inofort is a JV between industrial property company Inospace 5 and JSE-listed real estate investment company Fortress Real Estate Investments.

The property was previously occupied by Mpact Versapak, which was formerly a division of Mpact Operations. In November 2024, the Mpact Versapak business was acquired by Versapak, which is a subsidiary of Sinica Manufacturing.

Sinica Versapak manufactures styrene and polyethylene terephthalate trays and punnets, as well as vinyl cling film.

Sinica Versapak currently leases the Paarl property from Mpact on market-related terms under a five-year lease agreement that is set to expire in October 2029.

The disposal is consistent with Mpact's portfolio optimisation strategy, which seeks to improve portfolio quality through disciplined capital allocation, the release of value from noncore and underused assets and investment in businesses and assets with stronger long-term strategic fit and growth prospects.

As the property is no longer used by Mpact's operations, the board believes the disposal represents an appropriate opportunity to realise value from a noncore asset and redeploy capital in a manner that strengthens the balance sheet and supports the group's long-term strategic objectives.

It will use the proceeds to settle existing debt.

The net book value of the property, including solar equipment and generator systems, that is the subject of the disposal was R89.2-million as per the audited annual financial statements for the year ended December 31, 2025.

The rental income from the property was R19.6-million for the year ended December 31, 2025.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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