Tower brings in more rent


Tower brings in more rent

Published Date: 2020-06-05 | Source: Stephen Gunnion | Author: Stephen Gunnion

Tower brings in more rent

The property fund has granted tenants most affected by Covid-19 concessions and has deferred some rentals for up to a year.

Tower Property Fund says it has managed to collect more of the outstanding rent for last month and is moving ahead with its developments as lockdown restrictions are eased.

Following the final days of receipting for May, the fund said it had received 79% of rent, up from 61% two weeks ago.

Tower owns retail, office and industrial properties in the trendy De Waterkant district of Cape Town's Green Point suburb. It said it had recommenced its new development at the Old Cape Quarter following the move to level 3 of the national lockdown and expected completion in the third quarter of next year.

Earlier this week, it said it had approved rental concessions with a total value of R3.3 million for tenants most affected by the lockdown, including coffee shops, restaurants, travel agents and event management businesses. A further R4.2 million of rental payments had been deferred for periods ranging from six to twelve months.

It also reached an agreement to sell its Velica Gorica retail property in Croatia at its book value of €9.1 million as part of its strategy to recycle assets it believed had reached their growth potential. It said it was focused on strengthening its balance sheet, reducing its loan-to-value (LTV) across the board, and particularly reducing euro debt secured against its SA property portfolio.

Its shares fell 1.9% to R3.09 in light trade yesterday.

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