Resilient in talks to sell malls

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Resilient in talks to sell malls

Published Date: 2021-02-17 | Source: Stephen Gunnion | Author: Stephen Gunnion

Resilient in talks to sell malls

The real estate investment trust is negotiating the sale of seven of its shopping centres to the PIC.

Resilient REIT's shares rose more than 7% at their best yesterday after it said it was in talks that could result in it selling some of its retail assets.

The real estate investment trust said it had signed an engagement letter with the Public Investment Corporation on behalf of the Government Employees Pension Fund agreeing to negotiate the sale and purchase of Resilient's stakes in seven shopping centres. The centres included Brits Mall, Circus Triangle, Diamond Pavilion, Highveld Mall, Jabulani Mall, Mvusuludzo Mall and Tubatse Crossing. Under the proposed deal, it would continue to manage the malls for a defined period after the conclusion of the transaction.

Resilient gave no additional details about the disposals and what it planned to do with the proceeds but in a pre-close update in December it said it was in continuing discussions with a major institutional purchase on the disposal of its interests in several malls. At the time, it said it would only continue with discussions into the new year if it achieved significant progress with the transaction.

Despite the impact of the Covid-19 pandemic, it said its portfolio continued to perform well and recorded a decline in retail sales of only 1.7% for the first four months of the current financial year compared to the prior year. At the end of November, vacancies totalled 2.4% of gross leasable area (GLA), however, tenant demand had improved and it expected vacancies to decline.

Its shares closed 5.2% up at R44 yesterday.





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