Friday, 01 September 2017 20:49

JSE listed Rebosis Property Fund announces R917 million B-BBEE transaction

Written by
Rate this item
(0 votes)

Rebosis Property Fund, the JSEs first listed black-managed and significantly black owned REIT, yesterday announced a sector leading empowerment transaction.

Andile_Mazwai_COO_Rebosis

In terms of an agreement reached with a 100% black-owned B-BBEE consortium chaired by Nkosi-Yawo Gugushe, Rebosis will dispose of a 31,6% stake in UK retail income fund New Frontier Properties (New Frontier) for a total consideration of R917 million, at a sales price of R19.00 per share.

Rebosis has advanced a loan to the B-BBEE Special Purpose Vehicle (BEE SPV) to enable it to fund the acquisition of the share in New Frontier, payable over an initial five-year term, extendable for an additional five years. The loan is in addition to an equity contribution by the BEE SPV in the form of risk capital as far as it relates to the transaction, that will be offset against the vendor loan. The vendor has an option to substitute the loan with bank finance and is currently considering the option.

Andile Mazwai, Chief Operating Officer of Rebosis commented:

“This is a meaningful empowerment transaction which fulfills a number of strategic goals for Rebosis. It allows us to reduce our shareholding in New Frontier and de-consolidate  our investment by introducing new shareholders. This will improve our IFRS gearing levels.

It also contributes to our commitment to transformation in the listed space. Rebosis continues to champion transformation by creating a vehicle through which black people can participate in the U.K. and European property markets over a five-year horizon.

Rebosis remains supportive of New Frontier and will retain a significant but non-controlling strategic holding.

New Frontiers last published results for the nine months ended 31 May 2017 reflect profit after tax for the period of GBP7.459 million and a net asset value of 7.2 pence per share.

The shares have been acquired cum dividend and the BEE SPV will participate in all future distributions declared by New Frontier, including the undeclared distribution for the six-month period ending 31 August 2017.

New Frontier owns three centrally located out-of-London retail centres independently valued at a collective GBP 272 850 000 comprising an aggregate rentable area of 1 091 456 square feet.

The properties are located in Burton upon Trent (Coopers Square), Middlesbrough (The Cleveland Centre) and in Blackpool (Houndshill Shopping Centre).

Last modified on Monday, 04 September 2017 08:32

Most Popular

Emira Property Fund's R200m Rosebank office-to-residential conversion meets a high-demand gap in the market

Oct 26, 2017
Emira The Bolton residential development perspective
Emira Property Fund’s value-enhancing conversion of its Rosebank office property assets…

Sky City Mall: The hub of the mega Sky City development

Nov 03, 2017
Sky City Mall Front view
GMI Property Group (GMI), in collaboration with Cosmopolitan Projects are pleased to…

Intu Properties PLC and LaSalle Investment Management announce creation of a 50/50 joint venture to own Intu Chapelfield

Nov 02, 2017
INTU Chapelfield
Intu Properties PLC (‘intu’) and LaSalle Investment Management (‘LaSalle’) acting on…

Attacq Limited appoints Melt Hamman as interim CEO

Oct 24, 2017
Melt Hamman
Attacq Limited (Attacq) today announced that Melt Hamman, the company’s current CFO, will…

Dipula Income Fund grows portfolio to R8.5 Billion through strategic acquisitions

Nov 10, 2017
Izak Petersen1
JSE diversified REIT - Dipula Income Fund (Dipula) - today announced its intention to…