Freedom property disposals stall again


Freedom property disposals stall again

Published Date: 2019-09-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Freedom property disposals stall again

The capital growth fund planned to use the proceeds to pay down its debt.

Freedom Property Fund says it can't go ahead with the sale of a number of properties in Limpopo after the conditions for the disposals weren't met for a second time.

The group had planned to sell a number of residential units and stands owned by its Zambesa Investments and Tubatse Estate subsidiaries to a company called Cecilo Investments for just over R60 million. The transaction was first announced in May, but stalled in July after the the conditions weren't met. A revised transaction at the end of August still didn't make its deadline.

Freedom is a capital growth fund with a diversified portfolio of properties in the commercial, industrial and residential sectors. Cecilo is a property developer. The disposals are in line with Freedom's strategy of divesting of non-core assets, with the proceeds aimed at reducing its debt.

Meanwhile, at the beginning of the month, the group said it had received a non-binding expression of interest from the South African Housing and Infrastructure Fund (SAHIF) to acquire all its shares by way of a scheme of arrangement, subject to a due diligence investigation. The expression of interest is subject to an exclusivity period of a maximum of 120 days from 22 August. It said its board was in the process of engaging with SAHIF.

Its shares were suspended just over three years ago when they traded at 7c.

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