Property funds count their losses

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Property funds count their losses

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Published Date: 2021-07-15 | Source: INCE|Community | Author: The Finance Ghost

Property funds count their losses

Several property funds released updates yesterday on their losses from the looting.

I summarise those announcements here, in the most painful writing experience of my life. This is highly depressing for everyone involved but is important for investors to understand.

Resilient

Resilient has 28 retail centres, of which two have been damaged.

In what sounds like a James Bond scene, a Pikitup truck was hijacked and used to break the perimeter gates of Jabulani Mall, in which Resilient has a 55% stake. The front door and shopfronts have been damaged, but it doesn't sound as though the damage to the mall is as bad as in many other places in the country.

At Mams Mall, which Resilient has a 50% stake in, shops were only partially looted before SAPS and the private security company got rid of them. The announcement notes that 140 people were apprehended over two days although I'm unsure if that was linked to a single attempted looting.

Overall, six of the centres are closed. The four undamaged centres will be opened as soon as it is safe to do so.

Arrowhead

Of the 120 assets in the portfolio, only five have been damaged. In the case of Maverick Corner in Maboneng, Johannesburg, the damage was just a few broken windows.

Other properties were not so lucky.

Montclair Mall in eThekwini, KZN, has suffered substantial damage to shops and infrastructure. There was ongoing looting in this mall over two days. At Mkuze shopping centre, shops were looted but the mall itself only suffered minor losses.

Kyalami Industrial Park in Pinetown, KZN has been a high-risk property but the situation has been controlled with the assistance of private security and SAPS.

Mpumalanga has barely featured on the news. Unfortunately, three shops in the Matsulu centre were looted. It sounds like this was a relatively minor event, other than for the terribly unlucky owners of the shops in question.

The fund has increased security resources in every province and has closed many other properties as a preventative measure.

Dipula

Dipula owns properties in many of the marginal areas that become highly problematic in times of unrest. Twelve of Dipula's properties have been affected, comprising 6% of total gross lettable area.

Ten of these are retail centres in Gauteng and two are in KwaZula-Natal.

In six of the properties, the damage is "substantial but not structural" in nature, which suggests that rebuilds may be possible within a reasonable period of time.

The rest of the portfolio is still trading and now has additional security.

Vukile

Six of Vukile's properties have suffered damage. Four of them are in Durban and two are in Gauteng.

The damage is concentrated around shopfronts and equipment. Only two of the properties have fire damage at this stage: Pinetown Pine Crest and KwaMashu Shopping Centre.

A loss adjuster has already been appointed by SASRIA to assess the damage. You can decide for yourself whether "loss adjuster" is a term that makes you feel warm and fuzzy about what the next few months with SASRIA could hold.





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