Picture: BLOOMBERG/BRYAN VAN DER BEEK
Picture: BLOOMBERG/BRYAN VAN DER BEEK

Tower Property Fund, which has assets in SA and Croatia, has restructured its euro-denominated debt to reduce the risks of a significant weakening of the rand.

The group, which has a market capitalisation of R944m had about €41.6m (R792m) owed to Standard Bank, but has refinanced €31.5m of this debt into rand at a rate of R19.06/€.

This would result in higher interest costs, but reduce the risks of a weaker rand, the statement read. The group said it had also taken advantage of recent cuts to SA interest rates.

The balance of the euro debt will be settled using the proceeds from the sale of its Velica Gorica property in Zagreb, which Tower said in June it would sell for €9.1m. The group would then settle the rest of its debt with a new asset-backed euro-denominated loan.

In morning trade on Friday Tower’s share price was unchanged at R2.78, having fallen 44.95% so far in 2020.

gernetzkyk@businesslive.co.za

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.