Rebosis and Delta consider merging
Consolidation could help the two property funds scale up and diversify
Delta Property Fund and Rebosis Property Fund are considering a merger as this would help the landlords to scale up and weather the tough trading environment, they said in a joint announcement on Tuesday.
Both real estate investment trusts (Reits) have seen sharp declines in their share prices over the past two years, with SA’s economic slowdown taking its toll on commercial property and mall owners. Rebosis, whose shares are down about 96% from their 2017 highs, has had to contend with the additional pain of a failed bet on the UK market and high debt levels.