Business Rescue Practitioners (BRPs) reveal plans to sell 27 properties from Rebosis Property Fund for a total of R7 billion, as part of a business rescue initiative.
- Gusi Trust, Ferryman Capital Partners, Hulk Investments, Jade Capital Partners, and beneficiaries of the Ubuntu Football Trust among the buyers acquiring the Hangar 18 portfolio and other properties, amounting to R3.5 billion.
- The sale includes five shopping centers valued at R5.9 billion: Bloed Street Mall, Sunnypark Shopping Centre, Forest Hill City Mall, Hemingways Mall, and Baywest Mall, along with office properties and a student accommodation building.
- Proceeds from the sales will be utilized to reduce the existing debt of Rebosis Property Fund, addressing liquidity constraints and achieving a sustainable level of debt.
- Transfer of the properties is expected on February 21, 2024, pending fulfillment of all conditions. Shareholder approval is not required due to the business rescue status of Rebosis.
- Rebosis Property Fund entered business rescue due to factors such as rising interest rates, difficulties in recovering municipal costs from sovereign tenants, and delayed rental payments by government departments.
- The appointment of BRPs Phahlani Mkhombo and Jacques du Toit aims to facilitate the business rescue process, allowing for the temporary delay of creditor claims while a turnaround plan is developed.
Rebosis Property Fund’s sales of these properties mark a significant step in its business rescue efforts. The company seeks to restructure its debt and continue operating as a going concern, with the goal of achieving financial stability and long-term success in the real estate market.