News

Rebosis to acquire two regionally dominant retail centres

Forest Hill Mall
An aerial view of Forest Hill City Centre.

 

– Shareholders approve all resolutions for the transaction, in a landslide 87.6% vote in favour.
– The overwhelming support from shareholders is a strong message of confidence in Rebosis management and strategy.
– These acquisitions will improve overall quality of portfolio, turn Rebosis into a retail focused fund with large dominant malls that offer exceptional returns yet defensive in nature.
– Internalisation of asset management will serve to align management and shareholder interests, in line with international best practice.
– The acquisition of the property management brings on board experience and depth of management who have managed the assets well over the years.
– The asset and property management acquisitions further ensure executives and management attain significant shares in the company so interests are better aligned.
– The overall transaction is enhancing to Rebosis due to deferred equity compensation to vendors in future years.
– Post transaction, Rebosis is expected to re-rate significantly over time as a result of scale and high quality retail focus, and market cap expected to rise on the back of vendor equity and re-rating.
– The larger market cap and enhanced scale is expected to increase liquidity and returns for investors.

Rebosis Property Fund has 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 (Pty) Limited.

“We are very excited and also humbled by the overwhelming confidence our shareholders showed today,” commented Kameel Keshav, Chief Financial Officer of Rebosis, who spearheaded the transaction on Rebosis’ behalf.

Billion Group (Pty) Limited 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% shareholder 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 defensive 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 underwritten 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 experienced 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 approximately 72 811m² of retail shopping tenanted by large international brands and major national retailers, with parking for c.4 200 vehicles.

Its flagship stores include Woolworths, Checkers Hyper, Pick ‘n Pay, Foschini, Truworths, Mr Price and Edgars, amongst others.

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 (c.15 minutes) and Centurion Gautrain Station (c.10 minutes). It is also a short drive away from both Loftus Versfeld Stadium and SuperSport Park Stadium.

Baywest Mall

Baywest Mall is an A-grade regional shopping centre offering 89 989m² of modern, safe shopping 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 c.3 302 vehicles.

The shopping centre is equipped with cutting-edge technology including an entertainment fun factory offering the only Olympic-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 It is a short drive away from the Nelson Mandela Bay Stadium and the Port Elizabeth Harbour.