Delta Property Fund sells four properties to reduce debt

One of the properties Delta Property Fund owns in Buitengracht Street, Cape Town. File Image: IOL

One of the properties Delta Property Fund owns in Buitengracht Street, Cape Town. File Image: IOL

Published Aug 9, 2022

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Delta Property Fund said it had disposed of four properties – Fort Drury, Kaileno, CNA Building and WB Centre Properties – to DMFT Property Developers, Qianghua Huang and Red Caviar Holdings.

The Fort Drury building in Bloemfontein was sold to DMFT for R51.5 million cash.

The Katleho building in Bloemfontein was sold for R12.5m cash to Qianghu Huang. The CNA building in the same city was sold for R3.8m. A property at Chapel Street in Kimberley, the WB Centre, was sold to Red Caviar for R31m cash.

Delta said their strategy remained underpinned by the Sovereign. It was agreed the assets were no longer strategic to the company.

The WB Centre was being sold at a discount to book value due to the latest valuation that was based on substantially lower vacancies. In addition, after the valuation, there had been a further deterioration of the market. The current vacancy rate was 47.2 percent, following Woolworths’ decision to vacate the WB Centre.

The CNA building and the Katleho building were currently vacant. The combined vacancy rate between the Fort Drury and Katleho buildings, which are being sold as a package as they are notarially tied, amounted to 67.9 percent. Funds raised from the disposals would be used to reduce debt.

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