Rebosis Property Fund’s business rescue practitioners (BRPs) will sell 10 of the stricken group’s office properties to Hemipac Investments for R650m.
The properties include three vacant buildings, six multi-tenanted ones and single occupied building in Cape Town, Johannesburg, Mbombela and Pretoria. Sale proceeds will be used to reduce the group’s debt.
The transfer date is expected on February 24 2024. The transaction doesn't require shareholder approval since the real estate investment trust is in business rescue.
Phahlani Mkhombo of Genesis Corporate Solutions (GCS) and Jacques du Toit of DTB Business Rescue were appointed on August 31 to manage the business rescue process, which enables specialists to temporarily delay creditor claims while attempting to turn a troubled company around.
The BRPs started with the registration of Rebosis assets for sale on April 6. On August 23, they announced that 27 properties, including five shopping centres, offices and a student accommodation building in Mahikeng, will be sold for just over R7bn.
Debt-ridden Rebosis entered business rescue on August 26 2022, citing rising interest rates, the inability to recover increased municipal costs from government tenants and continued delays in rental payments by some government departments.
Given the group’s loan-to-value (LTV) ratio of 72%, the BRPs have little choice but to sell many of the group’s assets to reduce the overall debt pile.
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