Wrap Text
Monthly update announcement on the Public Sales Process and operational update
REBOSIS PROPERTY FUND LIMITED (IN BUSINESS RESCUE)
Incorporated in the Republic of South Africa
(Registration number: 2010/003468/06)
JSE share code: REA ISIN: ZAE000240552
JSE share code: REB ISIN: ZAE000201687
(Approved as a REIT by the JSE)
(“Rebosis” or the “Company”)
MONTHLY UPDATE ANNOUNCEMENT ON THE PUBLIC SALES PROCESS AND OPERATIONAL
UPDATE
Shareholders are referred to the announcement released by the Company on 6 April 2023 which
provided salient information regarding the Public Sales Process (“PSP”) and the extension to the PSP
timetable announcement on 28 June 2023. This announcement sets out the monthly update on the PSP
as well as an operational update as at 30 June 2023.
1. PSP progress to 30 June 2023
1.1 Following conclusion of the expression of interest phase (“EOI Phase”), the lenders,
advisors and joint business rescue practitioners (“Joint BRPs”) (collectively, “PSP Team”)
selected 22 participants (“Preferred Bidders”) to proceed to the due diligence and offer
phase (“DD & Offer Phase”). The Preferred Bidders include private individuals, joint
ventures, and JSE-listed REITS. In addition, the Government-tenanted portfolio has
received interest from unlisted property groups and seasoned property entrepreneurs
specialising in this asset class.
1.2 The Preferred Bidders have accessed the virtual data room which includes the requisite
information for Preferred Bidders to undertake their due diligence processes. This has
included requests for site visits.
1.3 Rebosis management and the PSP Team continue to respond to questions from the
Preferred Bidders. Rebosis management have, on request and on a one-on-one basis,
engaged with the Preferred Bidders regarding operational, technical and other matters
relating to the property portfolio. On request, further one-on-one engagements with Rebosis
management are expected to take place over the next two weeks.
1.4 Various Preferred Bidders have already conducted site visits including, in certain cases,
deploying specialist teams to conclude technical due diligences in respect of the various
properties. These site visits are being co-ordinated by the PSP Team upon request by the
Preferred Bidders. In certain circumstances this has required communication with and/or
consent being obtained from the relevant tenants.
1.5 The PSP is currently on track for the Company to receive final binding offers (“Binding
Offers”) by 17 July 2023.
1.6 Set out below is the indicative timetable in respect of the remainder of the PSP. As
previously communicated, the Joint BRPs have the right to amend these indicative dates.
Remaining PSP Original PSP Indicative Creditor-Approved
Milestones Date Extended Dates
Binding Offer Date 29 June 2023 17 July 2023
Final Offer Date 20 July 2023 7 August 2023
Selection of Final Purchaser 27 July 2023 14 August 2023
and conclusion of Final Sale
Agreement
1.7 Binding Offers have to be accompanied by proof of funding in a form acceptable to the Joint
BRPs for the full purchase price contained in the Binding Offer. Preferred Bidders are
encouraged to secure firm funding commitments ahead of submitting Binding Offers,
including credit approved term sheets from reputable financial institutions, where
applicable.
2. Delay in financial reporting
Rebosis has not been able to publish its annual financial statements for the year ended 31 August
2022 (“FY22 AFS”), nor its interim report for the six months ended 28 February 2023 (“Interim
Results”), within the required timelines prescribed by the JSE Listings Requirements, due to the
following reasons:
2.1 the audit process in respect of the FY22 AFS is still ongoing. To finalise the audit opinion,
Rebosis is required to have authorised and approved the valuations of its Investment
Properties. These valuations have been completed by an independent third party and are
currently being reviewed internally; and
2.2 the Interim Results can only be completed once the FY22 AFS have been finalised.
3. Employees and support functions
During the business rescue process, and up until 30 June 2023, the Company has ensured that
all Rebosis employees have been paid, such that support functions, facilities management
services and property and asset management functions across the portfolio remain
uninterrupted.
4. Operational highlights
4.1. Commercial leases:
21,160m² commercial leases were renewed for the 10-month period between 1 September 2022 to
30 June 2023 (the “period”).
This includes a two-year renewal with the Department of Economic Development in
Pietermaritzburg (9,517m²) and new leases (total GLA of 5,902m²), which includes a five-year lease
with the Department of Social Services in Nelspruit (2,264m²), and a five-year lease with the
Department of Statistics in Cape Town (800m²).
Over the period, commercial vacancies have increased from 26.7% to 27.27%, which is higher than
the South African Property Owners Association (“SAPOA”) current vacancy rate of 16.7%.
The increased vacancy is attributable to various factors including the current economic downturn,
rising interest rates and inflationary pressures from rising fuel and food prices that have further
reduced the demand for office requirements, as remote working and flexible office space remain
attractive, alternative business solutions.
Businesses are facing further pressures from the increased cost of doing business, with electricity
supply shortages, high municipal costs such as rates and taxes, as well as the negative implications
thereof on business confidence. Landlords are offering attractive installation allowances and longer
occupation periods to attract tenants in an increased competitive environment, which is mostly due
to the excess supply of offices in the precincts in which Rebosis operates (Johannesburg and
Pretoria central business districts).
4.2. Rental collections:
Rental collections (including arrears) have been maintained at 100%. Large tenants such as the
Gauteng Department of Infrastructure & Development and the Department of Public Works and
Infrastructure do not have any arrears in excess of 30 days. Long-outstanding arrears continue to
improve through steady collections.
The Joint BRPs remain confident that there is a reasonable prospect of rescuing the business.
Capitalised terms used in this announcement are as defined in the Business Rescue Plan, unless
otherwise stated.
14 July 2023
Joint BRPs: Phahlani Mkhombo and Jacques du Toit
Advisors to the Joint BRPs: Java Capital Proprietary Limited, Black Acres Proprietary
Limited, Deloitte & Touche
Legal Advisors to the Joint BRPs: Cliffe Dekker Hofmeyr Inc.
Sponsor to Rebosis: Nedbank Corporate and Investment Banking, a division of
Nedbank Limited
Date: 14-07-2023 11:10:00
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