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CONSTRUCTION WORLD
NOVEMBER
2016
Rebosis Property Fund, the JSE’s first listed black-
managed REIT, announced that it has obtained
overwhelming shareholder support to acquire two large,
regionally dominant retail centres as well as the services
companies from property developer Billion Group.
PROPERTY
“We are very excited and also
humbled by the overwhelming
confidence our shareholders showed
today,” commented Kameel Keshav,
chief financial officer of Rebosis, who spear-
headed the transaction on Rebosis’ behalf.
Billion Group is owned by Rebosis founder
and CEO, Sisa Ngebulana, and constituted a
related party transaction in terms of the JSE’s
Listings Requirements, requiring a 75% share-
holder approval.
“The acquisition allows Rebosis to acquire
scarce, high quality income generating retail
assets. Our retail exposure will be bolstered to
72% of the portfolio post the transaction.
“We’ve always been very circumspect
when it comes to quality and regional
dominance, especially in the current tough
economic environment. Even after the
acquisition, the retail portfolio will only
consist of six large regional shopping centres
with exceptional quality.
“Adding Baywest Mall and Forest Hill City
to our portfolio enhances our overall defen-
sive characteristics improving our average
weighted lease terms and underpinning our
above average yield,” elaborated Keshav.
The aggregate transaction amount is
R4,934-billion, with up to approximately
R3,7-billion funded by debt and the balance to
be paid in cash, to be funded through a series
of a claw-back offers which will be under-
written by Billion, Abacus (a 50% owner of
Baywest Mall) and Nedbank.
It is expected that the internalisation of
Billion’s management company into Rebosis
will better align the interests of management
with that of Rebosis shareholders and is in line
with global best practice.
The manco internalisation will further
allow for equity incentivisation of experi-
enced members of staff who are of strategic
importance to improving overall growth in
distributable income. This incentivisation
will be achieved at no further cost to existing
shareholders.
Forest Hill
Forest Hill City is located in Centurion, Gauteng
and opened on 29 May 2014. This A-grade
regional shopping centre comprises approxi-
mately 72 811 m² of retail shopping tenanted by
large international brands and major national
retailers, with parking for 4 200 vehicles. Its
flagship stores include Woolworths, Checkers
Hyper, Pick n Pay, Foschini, Truworths, Mr Price
and Edgars, amongst others.
LARGE ACQUISITION
With a strong fashion line-up, it features
designer boutiques and popular clothing
stores. Complementing its strong retail mix,
it also offers a convenient fast-food court
and fine-dining restaurants. Its unparalleled
entertainment includes an Olympic-size
indoor ice rink, heated wave pool, ten-pin
bowling alley, bumper cars and a state-of-
the-art games arcade.
Forest Hill City is well connected to public
infrastructure and supports quality lifestyles.
It has outstanding visibility along the N14
(Krugersdorp/Pretoria) highway and superb
access on the corner of the R55 and the N14
highway. The shopping centre enjoys excellent
proximity to the major business hubs of
Pretoria and Johannesburg and quick access to
the popular transportation nodes of Lanseria
International Airport (15 minutes) and
Centurion Gautrain Station (10 minutes). It is
also ashort drive away from both Loftus Vers-
feld Stadium and SuperSport Park Stadium.
Baywest Mall
Baywest Mall is an A-grade regional shopping
centre offering 89 989 m² of modern, safe shop-
ping in Port Elizabeth. It opened
on 21 May 2015.
The mall’s retail mix includes a wide
variety of international brands, major national
retailers, a food court, diverse entertainment
and various service offerings. Its anchor stores
include Woolworths, Checkers, Pick n Pay,
Game and Mr Price, amongst others. It has
parking for 3 302 vehicles.
The shopping centre is equipped with
cutting-edge technology including an enter-
tainment fun factory offering the only Olym-
pic-sized ice rink in the Eastern Cape, IMAX and
Cine Prestige theatres, ten-pin bowling alley, a
high-tech games arcade and superfast Wi-Fi.
Baywest Mall is located along the N2
highway. The on and off ramps from the N2
highway lead directly into the shopping centre,
making its accessibility effortless. It is a short
drive away from the Nelson Mandela Bay
Stadium and the Port Elizabeth Harbour.
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“For Growthpoint, GOZ represents seven
years of experience growing a successful busi-
ness in a first-world economy. It has done well
for another stable, good-quality income stream
and we will continue to support and encourage
its increased pace of growth,” confirms Sasse.
V&AWaterfront’s strong property dynamics
support continued growth, with significant
development in the Silo and Canal precincts
districts converting to revenue-generating
investments. “Here, we have a good develop-
ment pipeline as well as the opportunity to
acquire more bulk,” says Sasse.
With the combined effects of these drivers
and strategic objectives, Growthpoint expects
to achieve dividend growth for the coming year
at a similar level as FY16.
“In this difficult environment, Growthpoint
will remain driven by opportunity and demand.
We’ll actively seek ways to outperform and
continue to create sustainable value for our
shareholders,” concludes Sasse.