Rebosis cuts board ties to New Frontier Properties following sale

Rebosis Property Fund, which said last week it would sell its 49.4% stake in New Frontier Properties for R700, said on Monday it has cut all remaining ties to the struggling UK mall owner.

Rebosis CEO Sisa Ngebulana and chief investment officer Robert Becker resigned from the New Frontier board with effect from 11 July, it said.

“The transaction, coupled with these resignations, closes the remaining chapter of any business Rebosis has with, and support provided to, New Frontier,” the company said.

Rebosis’s 2015 acquisition of New Frontier has proved disastrous. It bought 62% of the UK landlord for R1.2bn, and will sell its remaining 49.4% stake for R700. It will also fully impair that investment, it said on Friday.

Rebosis’s shares slumped to 67c on Monday morning from highs of more than R13 in February 2017.

New Frontier, which has been grappling with declining mall valuations amid Brexit turmoil, said on Friday it would probably be forced into administration if it lost the support of its lenders.

It made a £60.1m loss for the nine months to end-May, from a £4.3m profit previously.

hedleyn@businesslive.co.za