Rebosis reduces office exposure


Rebosis reduces office exposure

Published Date: 2018-12-04 | Source: Stephen Gunnion | Author: Stephen Gunnion

Rebosis reduces office exposure

The property fund will receive as much as R2.19 billion for a number of commercial properties in Johannesburg and Pretoria.

Rebosis Property Fund has sold seven of its office properties to three empowerment groups as it focuses on growing its retail exposure and paying down its debt.

The fund has sold two Johannesburg properties to Aventro Properties, a women-led empowerment company, for up to R894.6 million. Endless Fortune, another black-owned company, will pay as much as R588.8 million for a Johannesburg and a Pretoria property, while Lunar Stone will pay up to R706 million for three Johannesburg properties.

In its 2018 results, announced last month, Rebosis said it was making good progress in its strategy to be a retail-focused fund and was well advanced with the disposal of its commercial properties. During the year, it agreed to sell an office portfolio to Boxwood Property Investment Fund, which it said would decrease its loan-to-value from 51.6% to 49.4%.

The fund wants its property portfolio to be 80% retail and 20% office over the medium term from a current ratio of about 50:50.

Its shares rose 2% to R3.07 yesterday.

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