FAIRVEST DISPOSES OF TOKAI JUNCTION FOR R180 MILLION

Press Release

Fairvest Property Holdings Limited (“Fairvest”) today announced the finalisation of the due diligence for its disposal of Tokai Junction, a 7 618m2  retail centre in Constantia, Western Cape to FPG Holdings Proprietary Limited for R180 million. Chief Executive Officer, Darren Wilder said: “the disposal value of R180 million represents good value for Fairvest. The disposal price represents a 2.1% premium to book value at 31 December 2019 of R176 million, which in a market where valuations are predicted to fall by as much as 20%, confirms that Fairvest’s property valuations are not over-valued.”

 

The proceeds will be used to pay down debt, in line with Fairvest’s strategic objective of ensuring that its balance sheet remains robust in a tough economic environment. To complete a transaction of this nature in the current environment demonstrates the attractiveness of Fairvest’s assets, as well as its ability to recycle capital when equity becomes expensive.


The only remaining condition outstanding is that of competition commission approval.


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Contacts:

Darren Wilder

Chief Executive Officer – Fairvest Property Holdings Limited

021 276 0800

 

For more details or to set up a media interview, please contact:

Lydia du Plessis

Investorsense

Cell: 082 491 7583

e-mail lydia@investorsense.co.za

 

About Fairvest

Fairvest is a property investment holding company listed in the Real Estate Investment Trust sector of the JSE Limited as a Retail REIT. Fairvest’s objective is to build a retail-focused property fund weighted toward non-metropolitan shopping centres including convenience, community and regional shopping centres, servicing the lower income market, in high-growth nodes close to commuter networks.

The Fairvest property portfolio consists of 44 properties across South Africa, with 261 431m² of lettable area valued at R3.49 billion and a sectoral split of 95.6% retail and 4.4% office properties.


Fairvest is well diversified across the main provinces of South Africa, with a regional income split of KwaZulu-Natal (24%), Western Cape (18%), Gauteng (24%), Free State (11%), Northern Cape (9%), Limpopo (5%), Eastern Cape (6%) and Mpumalanga (2%).