Following on-site assessments and engagements with tenants, service providers and insurance, Vukile Property Fund has reported that the estimated cost of repairs to 6 of its damaged properties in KwaZulu-Natal and Gauteng is expected to be less than 2% of the value of its South African retail portfolio which comprises of 45 assets.
In a SENS announcement, the company reported that the estimated damage suffered is less than originally anticipated and lower than the value for which it is insured. In addition, Vukile has undrawn facilities at its disposal to enable it to effect repairs ahead of its insurance claims being finalised to ensure its centres are fully operational as quickly as possible.
It further stated that it is fully insured for the potential loss of rental income which is expected to represent less than 3% of its annual gross South African rental income.
It’s Durban Workshop, consisting of 20 204m2 of gross lettable area (GLA), did not suffer material damage and it is expected to be fully operational by the end of October 2021.
Hammarsdale Junction and Pinetown Pine Crest, which suffered damage to shopfronts, roller shutter doors, fixtures, and fittings, are expected to be fully operational before the end of September 2021.
The company is focusing on getting its food anchor tenants in Durban Workshop, Hammarsdale Junction and Pinetown Pine Crest operational by mid-August 2021 to restore essential services to the centres in these communities.
Only KwaMashu Shopping Centre in KwaZulu-Natal suffered significant structural damage, representing 60% of the total damage incurred to the company’s South African retail portfolio. Repairs and clean-up operations are under way, and it is expected to be fully operational by April 2022.
Daveyton Shopping Centre and Soweto Dobsonville Mall are currently operating at 85% and 50% capacity respectively, having suffered damage mainly to shopfronts and both centres are expected to be fully repaired and operational by mid-August 2021.
