Latest news with #R24m
IOL News
2 days ago
- Business
- IOL News
Fairvest reports robust interim distributable income growth and acquires five properties
Fairvest's Southview Centre in Soshanguwe. The group is steadily transforming its diversified commercial property portfolio to one that focuses on retail centres for lower income communities. Image: Supplied Fairvest, which Friday announced the acquisition of five properties for R477.7 million, increased its interim distribution for its B share by 8.8%, a performance well above inflation and which ranks it among the leaders in South Africa's REIT sector at present. Fairvest owns and manages a portfolio of 127 retail, office, and industrial properties, valued at R12.5 billion. During the six months to March 31, the group increased its stake in Dipula Properties to 26.3% from 5%, which was accretive to earnings and loan-to-value. 'Fairvest is making progress in transforming its diverse portfolio by improving the quality, while pursuing its aim of becoming a retail-only REIT servicing low-income communities in South Africa. The portfolio transformation is taking place at a slow and measured pace,' CEO Darren Wilder said in an interview. The strategy involves disposing of non-core assets and reinvesting in retail-focused properties - about 70% of revenue is currently generated from retail properties, he said. Consistent with this plan, Fairvest acquired five retail properties in KwaZulu-Natal and the Western Cape: Nquthu Shopping Centre, Ulundi Shopping Centre, Eyethu Junction, and Shoprite Manguzi in KwaZulu-Natal. These shopping centres have key food retailers, including Shoprite, Boxer, and SuperSpar, as anchor tenants. Also, an agreement was reached to acquire Thembalethu Square, outside George in the Western Cape, which is anchored by Shoprite and Boxer. Fairvest owns 51% of the issued shares in the new acquiring company. Wilder said they were 'always on the lookout' for assets that fitted their strategic focus. Fairvest disposed of one industrial property valued at R24m during the period and at a 14.3% premium to book value. Capital expenditure of R139m included R19.8m for further investments in solar initiatives. The group also invested R76.6m in fibre network infrastructure, which earns rental income. 'The portfolio continues to benefit from the disciplined execution of our strategy - vacancies remain consistently low, tenant quality has improved and the portfolio remains operationally robust. These solid fundamentals, combined with conservative balance sheet management, position the group for sustained growth,' said Wilder. There was positive letting activity in the six months, with 236 new deals and 216 renewals. Vacancies edged up to 5.5% from 4.3%. The entire 8% increase in property expenses was linked to higher municipal costs. Excluding this, operating expenses decreased by 1.9%. Property expenses were expected to increase around 7% for the year, said Wilder. Net loans of R4.4bn represented a loan-to-value of 31.8%, a reduction from 33.3% at the September 2023 year end. Cash on hand and undrawn debt facilities stood at R547.4m by the end of the interim period. Progress was made on the business continuity strategy - around 48.3% of the portfolio's gross lettable area has access to either partial or complete backup power. The number of solar plants stood at 46, with total installed capacity of 21.9 MWp. These plants provided 16.7% of the combined portfolio's electricity needs in the six months. Clean, renewable energy generated during this time amounted to R33.1m. A further eight plants were expected to add some 2.1 MWp of capacity.
The Citizen
20-05-2025
- Politics
- The Citizen
Committee uncovers irregularities in stadium project in Leandra
The Select Committee on Public Participation, Petitions and Members' Legislative Proposals did a follow-up oversight visit to the Lebohang Stadium in Leandra on May 13. The visit followed a 2019 petition by the local sports council citing poor workmanship on the stadium, initially envisioned as a state-of-the-art multipurpose facility. Committee chairperson Siphosezwe Mahlangu opened the meeting by outlining the committee's constitutional mandate. All the stakeholders were invited to account for their roles in the project. The Govan Mbeki Municipality, represented by municipal manager Elliot Maseko, explained that R11m in funding was received through the Municipal Infrastructure Grant (MIG) for phase one of the project in 2018/19. However, serious discrepancies in execution were identified, leading the municipality to allocate an additional R3m for remedial work and request R10m from the provincial Department of Culture, Sport and Recreation (DCSR) for phase two. The DCSR withheld the funds due to unresolved concerns regarding misallocated spending in phase one. MEC Leah Mabuza praised the sports council's responsible actions and the legislature's oversight, committing to ensuring accountability. She emphasised the importance of quality service delivery in projects uplifting poor communities. The provincial and national Departments of Sports, Arts and Culture said several errors had plagued phase one. The provincial department denied early involvement in the project, a claim disputed by the national department and viewed as unsatisfactory by the committee. Songezo Phethelo, the director for infrastructure development at the national department, criticised the lack of ownership from provincial counterparts. This committee echoed this concern, demanding higher standards of accountability. Sports council chairperson Abednego Lukhele recounted the council's exclusion from the project's implementation, blaming it for the substandard outcome. He commended the legislature for its intervention and the community of Leandra for responding peacefully despite frustrations. The committee condemned the overall handling of the project and raised several unresolved questions, including: • Why was the provincial department not involved from the beginning? • What remedial actions have been taken? • Is the project's current state worth the R11m already spent? • Why was the sports council excluded from the project steering committee? • Why were payments approved for uncompleted work? The committee expressed concern over escalating costs now estimated at R24m and called for serious consequence management, which might include employee dismissals, arrests, repayment of public funds and blacklisting the implicated service providers. The matter was referred to the Select Committee on Public Accounts for further investigation, with a directive for all stakeholders to submit detailed reports and attend future hearings. ALSO READ: A day in the life of a Standerton midwife ALSO READ: Tshwane is making strides in tackling Bronkhorstspruit's water issues At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
