{"id":716786,"date":"2023-09-07T09:49:06","date_gmt":"2023-09-07T07:49:06","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=716786"},"modified":"2023-09-08T13:08:21","modified_gmt":"2023-09-08T11:08:21","slug":"one-of-the-biggest-malls-in-south-africa-just-sold-for-r1-3-billion","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/716786\/one-of-the-biggest-malls-in-south-africa-just-sold-for-r1-3-billion\/","title":{"rendered":"One of the biggest malls in South Africa just sold for R1.3 billion"},"content":{"rendered":"\n

The biggest mall in the Eastern Cape, Baywest Mall, has sold for R1.3 billion as part of a wider R7 billion sale of Rebosis properties.<\/p>\n\n\n\n

The group confirmed the sale this week, listing Baywest and another mega-mall among 27 properties sold to date.<\/p>\n\n\n\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\n\n\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\n\n\n

While the company owns a number of high-value income-generating properties \u2013 including several large malls \u2013 the group came under increasing financial pressure in recent periods, which resulted in the group\u2019s financial position deteriorating significantly.<\/p>\n\n\n\n

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

To address the group’s ballooning debt, the group’s business rescue practitioners (BRPs) embarked on a sale of around 41 properties, which include a mix of commercial properties and retail centres.<\/p>\n\n\n\n

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

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Baywest Mall<\/figcaption><\/figure><\/div>\n\n\n

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

Baywest has sold for R1.3 billion to a consortium of investors under the name Hangar 18 Portfolio. The same consortium also acquired 74,000 square metre Hemingways Mall for the same price.<\/p>\n\n\n\n

The business rescue documentation listed the values of the malls at R1.6 billion and R1.7 billion, respectively – however, the value at the time of sale was around R1.25 billion.<\/p>\n\n\n

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Hemingways Mall<\/figcaption><\/figure><\/div>\n\n\n
\n\n\n\n

Read: Massive shake-up for shopping malls in South Africa as Spar, Pick n Pay and Shoprite end exclusivity agreements<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The biggest mall in the Eastern Cape has been sold to a consortium for R1.3 billion.<\/p>\n","protected":false},"author":10,"featured_media":688481,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[26],"class_list":["post-716786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/716786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=716786"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/716786\/revisions"}],"predecessor-version":[{"id":717244,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/716786\/revisions\/717244"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/688481"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=716786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=716786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=716786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}