Cape Town, 14 June 2020. 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.