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Steinhoff – Hemisphere Real Estate Valuation
Steinhoff International Holdings N.V.
(Incorporated in the Netherlands)
(Registration number: 63570173)
Share Code: SNH
ISIN: NL0011375019
Steinhoff – Hemisphere real estate valuation
Steinhoff International Holdings N.V. (the “Company” and with its subsidiaries, the “Group”)
The Company announced in December that it was investigating the validity and recoverability
of certain non-South African assets and that it would be delaying the publication of its 2017
consolidated financial statements. It was further stated in the Company’s quarterly trading
update on 28 February 2018 that material additional impairments of certain assets may be
required following further investigation by management and PwC.
In connection with such investigations, the finalisation of the audit for the 2017 consolidated
financial statements and the strategic review being conducted by the Company, CBRE
Limited (“CBRE”) has been engaged by Hemisphere International Properties B.V. (an indirectly
wholly owned subsidiary of the Company) (“Hemisphere”) to undertake a valuation exercise
in respect of the real estate interests of Hemisphere and its subsidiaries (such entities, the
“Hemisphere Group” and such interests, the “Hemisphere Portfolio”). The Hemisphere Portfolio
valued by CBRE comprises approximately 140 properties (including stores, warehouses, offices,
production sites and vacant land) across Austria, Germany, the Netherlands, Switzerland, the
UK and Eastern Europe. The majority of the properties across Austria and Eastern Europe are
stores leased to KIKA-LEINER. The Hemisphere Portfolio excludes retail stores relating to the
Harveys, Bensons for Beds, Conforama, Dealz, Pepkor Europe, Poco, and Poundland
businesses which either lease properties from third parties or own retail properties in operating
companies which do not form part of the Hemisphere Group.
On the basis of the assumptions adopted by CBRE, CBRE valued the Hemisphere Portfolio as
at 1 February 2018 at approximately €1.1 billion. CBRE valued the properties on the basis of
“Fair Value” (as defined in IFRS 13) and assuming vacant possession which disregarded internal
leases to Company related entities and considered only leases between an external third-
party tenant and the relevant Hemisphere Group entity.
The Company will consider CBRE’s valuations in detail and will work with its auditors to
determine the consolidated net book value of the Hemisphere Portfolio for the purposes of
publication of the Company’s consolidated financial statements for 2017. The Company
considers it likely (in light of CBRE’s findings) that the consolidated net book value of the
Hemisphere Portfolio (once determined) will be materially lower than the €2.2 billion previously
estimated by the Company and disclosed on its website in February 2018.
JSE Sponsor: PSG Capital
Stellenbosch, 3 April 2018
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