British investment New Frontier creates problems for Rebosis
Struggling Rebosis Property Fund wants to reduce its loan-to-value ratio to below 40%, from 49.4% at the end of November
Struggling Rebosis Property Fund, which on Friday warned that its 2019 financial year was set to be its worst since listing eight years ago, will sell three of its local malls for R1.8bn to repay loans. The fund’s CEO and founder, Eastern Cape entrepreneur Sisa Ngebulana, had spent a couple of years selling office properties so that he could transform Rebosis into a pure retail landlord to compete with Hyprop Investments and others. Its balance sheet is laden with debt and the shoddy performance of its UK investment New Frontier Properties has put more pressure on its finances.
Keillen Ndlovu, head of listed property funds at Stanlib, said: “Rebosis was left with no option but to sell not only office assets, but some of its best retail assets as well, in order to solve debt and cash flow issues.” Vukile Property Fund has made an offer to buy Mdantsane City Shopping Centre, Sunnypark Shopping Centre and Bloed Street Mall for R1.8bn. Rebosis wants to reduce its loan-to-val...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.