Rebosis Property Fund Limited, currently under business rescue, released its quarterly update as of August 31, 2023, showcasing significant strides in its public sales process (PSP) and addressing delays in financial reporting.
In a bid to reduce overall group debt, Rebosis has diligently pursued its business rescue plan through a series of strategic property disposals. As of August 31, 2023, the company finalized several crucial sale agreements:
A portfolio sale agreement was concluded on August 21, 2023, involving Ascension Properties Proprietary Limited, Rebosis, Main Street 1119 Proprietary Limited, Cape Horizon Properties 125 Proprietary Limited, and CBD Investments Proprietary Limited (“CBD”). The deal, valued at R3,005,832,000, aims to dispose of the CBD Disposal Properties.
On the same day, a portfolio sale agreement and a separate sale of rental enterprise agreement were reached with Hangar 18 Investments Proprietary Limited. The agreement covers the disposal of a portfolio of properties (Hangar 18 Portfolio Properties) and a separate property (Bloed Street Property), along with a material lease (Bloed Street Lease). The total consideration amounts to R4 billion, with R3,580,000,000 for the Hangar 18 Portfolio Properties and R420,000,000 for the Bloed Street Property and Lease.
On August 28, 2023, a portfolio sale agreement was finalized between Ascension (in business rescue) and Hemipac Investments Proprietary Limited for the disposal of Hemipac Disposal Properties, totaling R650,000,000.
On September 22, 2023, Rebosis entered into a portfolio sale agreement with Katleho Property Investments Proprietary Limited, involving Katleho Disposal Properties. The aggregate consideration for this disposal is R160,000,000.
The anticipated transfer dates for CBD Disposal Properties and Hangar 18 Disposal Properties are around February 21, 2024, and for Hemipac Disposal Properties around February 28, 2024. Katleho Disposal Properties’ transfer date is expected by March 31, 2024.
Rebosis has faced challenges in meeting its financial reporting obligations. The annual financial statements for the year ended August 31, 2022 (FY22 AFS), and the interim report for the six months ended February 28, 2023, have not been published within the required timelines due to ongoing audit processes and internal reviews. The delays are attributed to the necessity of authorizing and approving valuations of investment properties.
Despite the business rescue process, Rebosis has prioritized employee welfare, ensuring timely payments to all staff until August 31, 2023. The company has actively engaged with property buyers to preserve jobs, successfully securing the employment of approximately 75% of affected employees.
The Joint Business Rescue Practitioners, Phahlani Mkhombo and Jacques du Toit, express confidence in the reasonable prospect of rescuing the business. The disposals align with the business rescue plan, aiming to utilize the proceeds to reduce the existing indebtedness of the group.
Rebosis Property Fund Limited remains committed to navigating its business rescue plan successfully. Shareholders and stakeholders can anticipate further updates as the company progresses through the public sales process and works towards reinstating its listing on the JSE.
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