Rebosis sells seven office assets to black-owned companies
ENGINEERING NEWS / 03 DECEMBER 2018 - 19.55 / MARLENY ARNOLDI
JSE-listed real estate investment trust (Reit) Rebosis Property Fund has, through its subsidiary Ascension Properties, entered into three sale and purchase agreements to dispose of seven properties in its office portfolio to various 100%-black-owned property developers.
The disposals form part of the Reit’s strategy to become a retail-focused fund and to reduce the company’s gearing, in line with the roadmap outlined in its results announcement earlier this month.
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The proceeds of the disposals will be used to reduce the company’s debt.
Rebosis will sell two properties in Marshalls Town to Aventro Properties for R894-million, or 9.75% yield on the 12 months’ forward net income of the market-related rental on lease renewals achieved with the tenant.
Endless Fortune will buy two properties in Marshalls Town and Pretoria for R588-million, or 9.75% yield on the 12 months’ forward net income of the market-related rental on lease renewables achieved with the tenant.
Rebosis will sell three properties in Johannesburg to Lunar Stone for R551-million, or 9.75% yield on the 12 months’ forward net income of the market-related rental on lease renewals achieved with the tenant.
The Reit anticipated that the transfer date for the disposals should be before May 2019.
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