Rebosis to sell three malls for almost R2bn to repay loans
Rebosis will sell retail properties Mdantsane City Shopping Centre, Sunnypark Shopping Centre and Bloedstreet Mall, to Vukile Property Fund
Rebosis Property Fund, which has lost favour among investors partly because of its elevated debt levels, says it will raise about R1.8bn by selling three malls as part of its plans to deleverage. “The company has experienced delays in the planned disposals of its office portfolio, as funding the acquisition of office properties rely on tenants’ long-term leases, which have been taking longer than anticipated to renew,” Rebosis said. As a result, Rebosis said “it is important to expedite the reduction of its loan-to-value ratio in order to achieve a lower cost of funding, an improved credit rating and a stronger balance sheet”.
This would “return market confidence in Rebosis”, it said.Rebosis said it would sell three retail properties — Mdantsane City Shopping Centre, Sunnypark Shopping Centre and Bloedstreet Mall — to Vukile Property Fund for R1.8bn.“The proceeds of the disposals will be used to reduce the existing debt of the company," it said.The sales are expected to become...
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