Acquisitions push Rebosis Property Fund’s portfolio up R18.6 billion
Rebosis Property Fund to acquire Forest Hill City mall in Centurion along with Baywest City shopping centre in the Eastern Cape and a 50.1% undivided share in BT Ngebs City mall in Mthatha
Black-owned property group, Rebosis Property Fund pushed up total assets under management to R18.6 billion after a R6 billion acquisition that will substantially increase the group’s exposure to retail assets.
Rebosis on Monday announced that it had concluded an agreement with Billion Group, a sister company, to acquire 100% of Baywest City shopping centre, the largest mall in the Eastern Cape; Forest Hill City, a mall in Monavoni, Centurion; and a 50.1% undivided share in BT Ngebs City mall in Mthatha, bringing to seven its prime retail assets.
In the deal, Rebosis will also acquire Billion Asset Managers as well as Billion Property Services Limited, effectively internalising the asset management and property management companies of the Group.
“Transactions of this nature are very rare. These are very large dominant regional shopping centres that will significantly increase our scale and liquidity as well as the quality of the overall portfolio," Rebosis Chief Financial Officer, Kameel Keshav said.
“The acquisition represents a watershed moment in Rebosis’ history, that will see the company’s total assets under management grow to R18.6 billion and at our current share price, raise our market capitalisation to around R8.3 billion,” Keshav added.
The proposed transaction will result in CEO and founder Sisa Ngebulana’s stake in Rebosis growing to approximately 20% including deferred payments. Post the transaction, Rebosis will hold seven prime retail assets with an approximate value of R9 billion, representing 66% of its total asset value.
“The internalisation of the asset management and property management companies will better align the interest of management and shareholders,” he added.
Meago Asset Management’s Thabo Ramushu said the deal made Rebosis a sizeable fund.
