Property updates keep coming

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Property updates keep coming

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Published Date: 2021-07-16 | Source: INCE|Community | Author: The Finance Ghost

Property updates keep coming

This week, we've had a flurry of updates from property funds on the damage caused by the riots. I wrote about Wednesday's batch here. This is a summary of the announcements released yesterday.

Redefine

Redefine is a large fund which lists 138 properties in its portfolio on the fund's website. Thankfully for the company, only six properties were looted and damaged.

The big win was the avoidance of any damage to Maponya Mall, thanks to extensive community involvement.

Approximately 2% of the fund (measured by value) has been affected. The actual damage cannot be quantified yet.

Fairvest

Around 48% of Fairvest's gross lettable area is split across Gauteng and KwaZulu-Natal, which must have seemed like an excellent idea before this week.

Of the 43 properties in the portfolio,12 have been affected. Whilst that is a significant percentage of the total, the good news is that the damage is mainly limited to shopfronts, roller doors, fixtures and fittings.

Two of the centres have been partially burnt but only in small areas.

Encouragingly, SASRIA has given the insurance companies authority to appoint assessors on their behalf to act efficiently. That's without doubt the green shoot of the day!

Exemplar Retail

Exemplar owns numerous malls in lower income areas. Unsurprisingly, the REIT has suffered damage this week to a number of properties.

These include three malls in KwaZulu-Natal and two in Gauteng. Stakes in these malls range from 50% to 100%.

The fund has not quantified the damage at this stage.

Stor-Age

The self-storage business has been the REIT to own through the pandemic, with fundamentals that aren't affected by empty malls and office buildings. Nevertheless, any good run of luck must end.

Stor-Age Waterfall, located in Hillcrest, has been extensively looted and parts of the property were set on fire. The damage hasn't been fully assessed yet as the area is still volatile.

Thus far, this is the only property affected out of 52 properties operated by the fund in South Africa.

Safari Investments

Despite the name, Safari is the unfortunate owner of malls rather than bush properties far away from the madness.

Three of the retail centres in Gauteng targeted by the looters. The Thabong shopping centre in Sebokeng suffered severe damage to all shops.

Denlyn Shopping Centre in Mamelodi and Nkomo Village in Atteridgeville were also breached, but damage was so minimal that the centres re-opened for trade on Wednesday.

Oasis Crescent Property Fund

Oasis Crescent has suffered significant damage to one of the properties in KwaZulu-Natal: The Ridge@Shallcross Shopping Centre. This includes fire damage.

As is the common theme, the damage cannot be assessed yet.

Indluplace

Indluplace is a residential property fund, which has been the model of choice in the past week. Still, the fund has confirmed that its only issue has been minor damage to a building in Johannesburg.

Other than that, the residential portfolio has not been affected.





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