{"id":688347,"date":"2023-05-16T15:04:46","date_gmt":"2023-05-16T13:04:46","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=688347"},"modified":"2023-05-17T07:35:21","modified_gmt":"2023-05-17T05:35:21","slug":"one-of-the-biggest-malls-in-south-africa-is-up-for-sale","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/688347\/one-of-the-biggest-malls-in-south-africa-is-up-for-sale\/","title":{"rendered":"One of the biggest malls in South Africa is up for sale"},"content":{"rendered":"

The biggest mall in the Eastern Cape, Baywest Mall, is one of five major retail centres that will be put up for sale in the Rebosis business rescue process.<\/p>\n

Rebosis, a JSE-listed Real Estate Investment Trust (REIT), entered into business rescue in August 2022, following years of deterioration in financial performance.<\/p>\n

The group was established by the Billion Group in 2010 and became the first black-managed and substantially black-owned property fund to be listed on the JSE.<\/p>\n

While the company owns a number of high-value income-generating properties – including several large malls – the group came under increasing financial pressure in recent periods, which resulted in the group’s financial position deteriorating significantly.<\/p>\n

Some notable pressures included the rising interest rate cycle on servicing debt costs as well as an\u00a0inability to recover increased municipal costs from sovereign tenants.<\/p>\n

Speaking to Moneyweb<\/a><\/strong>, one of the business rescue practitioners for the group, Jacques du Toit, said that the company’s financial woes were present before the Covid-19 pandemic hit – but the crisis and subsequent lockdowns piled on the pressure, leaving the group no option but to go into business rescue.<\/p>\n

Du Toit said that the intention of the business rescue plan is “rectify the loan-to-values” of the business as far as possible.<\/p>\n

To achieve this, the BRPs will look to sell properties in the portfolio at the best value possible to reduce debt levels.<\/p>\n

“It is the intention to reach high levels through the public participation process and sales process, and then for Rebosis to remain with properties, to actually continue as a business and also continue as a listed entity,” he said.<\/p>\n

This will see the BRPs focusing on around 41 properties, which include a mix of commercial properties and retail centres.<\/p>\n

Specifically, there are five key retail centres, of which the biggest is the 87,000 square metre Baywest Mall in Gqeberha.<\/p>\n

The others include Hemingways Mall in East London, Sunnypark and Bloed Street malls in Pretoria, and Forest Hills Mall in Centurion.<\/p>\n

\u201cSo there are five major centres involved. The rest are mostly governmental properties, the rental properties on a commercial basis,” du Toit said. “The intention is actually to sell off the retail, and to go back to the original interest in the government space.”<\/p>\n

According to the business<\/a> rescue<\/a> documentation<\/a>, the retail portfolio carries an estimated value of around R5.3 billion<\/strong>.<\/p>\n

The malls in question carry the following preliminary values:<\/p>\n