The group said the purchase would be made through a fresh issue of 9.5m JD Group shares at an issued price of R47 each.
The leases are for 19 dealerships across SA which are occupied by Unitrans Automotive, a wholly owned subsidiary of JD Group.
The properties are subject to nine-year leases that started in July. JD Group Properties will own all the properties.
According to JD Group, the acquisition will strengthen its financial position as the price will be settled by issuing equity to Steinhoff.
Kagiso Asset Management head of research Abdul Davids said the transaction appeared to be a part of Steinhoff's strategy to rationalise its South African interests into the JD Group.
"The issue of JD shares in lieu of the purchase price will increase Steinhoff's majority shareholding and the issue price of the JD shares is above the current market," he said.
"From the independent valuator's report it appears that the properties were sold at fair value, so the impact should be neutral on the valuation of both companies," Davids added.
After a series of deals, JD Group became a 50.1%-owned subsidiary of Steinhoff in April.
JD Group reported headline earnings of R884m for the 10 months ended June, a 26% improvement compared with the previous 12-month reporting period ended August last year.
JD Group reported improved performance of Unitrans Automotive which it bought last year.
However, in line with the trend in Steinhoff's European businesses, the decline and deflation in electronic appliances affected JD's cash retail business.
Source: Business Day via I-Net Bridge
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