Despite being R10m short of the target price announced in April, CEO Darren Wilder says the deal is still profitable
Retail property owner Fairvest has sold its Tokai Junction, in Cape Town, for R180m to reduce debt, it said on Tuesday. The final fee is R10m short of the target price announced in April.“The disposal value represents good value for Fairvest. The disposal price represents a 2.1% premium to book value,” he said.
The asset’s value at end-December was R176m. Wilder said that in a market in which valuations were predicted to fall by as much as a fifth, this confirmed that Fairvest’s property valuations were not overvalued.’s strategic objective of ensuring that its balance sheet remains robust in a tough economic environment,” Wilder said.The JSE’s listed real-estate sector has been hit by the Covid-19 epidemic that has wreaked havoc worldwide, resulting in closure of businesses.
The lockdown has affected Fairvest’s tenants who were unable to pay their full rent due to the lack of business activities. Fairvest, which owns retail centres in rural and small towns, has since agreed to give some tenants rental discounts and deferments.
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