Texton winds up Chobe Tesco sale

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Texton winds up Chobe Tesco sale

Published Date: 2019-07-10 | Source: Stephen Gunnion | Author: Stephen Gunnion

Texton winds up Chobe Tesco sale

The property fund will use the proceeds of £12 million to pay down debt and fund capex requirements.

Texton Property Fund has finalised the sale of its Tesco Building in Newcastle in the UK as it refinances and deleverages its UK property portfolio.

Subsidiary Chobe Investments sold the property for £12 million in cash to a special purpose vehicle which will be managed by Squarestone Operations, a real estate investment incubator. The selling price was in line with an April valuation of the property.

Texton has been rationalising its portfolio and selling non-core properties. Like other funds targeting the UK market, it has been affected by uncertainty ahead of Brexit. A number of retailers have also filed for Company Voluntary Arrangements, similar to bankruptcy protection, due to weakness in the sector.

It said the proceeds from the deal would be used to pay down debt and fund capital expenditure requirements.

Its shares closed 1.3% higher at R3.95 yesterday.





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