File photo: BLOOMBERG/BRYAN VAN DER BEEK
File photo: BLOOMBERG/BRYAN VAN DER BEEK

A series of cuts to interest rates in SA have led to increased interest from potential buyers of its assets, Property group Fortress Reit said on Monday.

Fortress — which has assets in logistics, commuter-orientated retail centres, and industrial and office properties — has been disposing of assets to bolster its balance sheet.

On March 5, the date of the group’s release of results for its six months to end-December, the group had property held for sale worth R389m, but transfer of properties valued at R234.5m had taken place, the group said.

Since March 5, additional properties with a book value of R36.4m have been sold, bringing the total value of properties held for sale to R192.5m on June 5.

“The reduction in interest rates by 275 basis points since the start of 2020 is encouraging and has led to increased interest from potential buyers,” the statement reads.

“Our dedicated disposals team continues to receive inquiries for our noncore industrial and office properties,” the group said.

At end-December the group’s directly-held industrial property interests were worth R3.8bn. It had R2.4bn in directly held office assets.

gernetzkyk@businesslive.co.za

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