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Steinhoff cuts estimated value of major European property portfolio

Embattled retailer Steinhoff has announced that the true value of real estate interests owned by one of its European subsidiaries may be €1.1bn (about R16bn) less than previously calculated.

The Stellenbosch-headquartered conglomerate said in a market announcement on Tuesday evening that commercial real estate advisory group CBRE had valued the real estate portfolio of its subsidiary Hemisphere International Properties at "approximately €1.1bn".

This is half the company's previous estimate of €2.2bn.

"The company will consider CBRE’s valuations in detail and will work with its auditors to determine the consolidated net book value of the Hemisphere portfolio for the purposes of publication of the company’s consolidated financial statements for 2017," it said. 

The Hemisphere portfolio comprises approximately 140 properties - including stores, warehouses, offices, production sites and vacant land - across Austria, Germany, the Netherlands, Switzerland, the UK and Eastern Europe, said Steinhoff. 

Plunge 

Steinhoff's shares closed at R3.32 on the JSE on Tuesday, up marginally on the day. Two years ago, on April 4 2016, shares in the group sometimes at the time referred to in the press as "the Ikea of Africa" were changing hands at around R94 a share. 

The group's share price plunged following an announcement in early December last year that its CEO Markus Jooste was abruptly stepping down amid an accounting scandal. 

Jooste is under investigation by priority crime investigating unit the Hawks.

joint parliamentary committee has agreed to follow a process to subpoena him to give testimony after he declined an invitation to appear before Parliament.

Steinhoff's 2017 financial results, meanwhile, have been delayed while PwC conducts a forensic audit of its books. This investigation may continue until the end of 2018.

 


 

Source

Fin24

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PSG Group invests R675m in local property business Amdec

South Africa’s PSG Group spent R675 million ($50.77 million) for a 50% stake in Evergreen Lifestyle, part of local property business Amdec, as it eyes expansion into the lucrative retirement property sector, the companies said on Tuesday.

“Our investment mandate is to invest in and work with businesses that show high growth potential,” said Nico de Waal, chief executive of PSG Alpha, a unit of PSG Group. 

De Waal said the investment was subject to regulatory approval.

The investment holding company, PSG Group, is already a majority shareholder of Curro Holdings, South Africa’s largest private education group which is expected to float its higher education business next month.

James Wilson, chief executive of Amdec Group, which includes the mixed-use Melrose Arch in Johannesburg, said there was scope to meet increased demand for retirement lifestyle villages.

The cash injection will allow for expansion to around 3 000 homes over the next three years, from the current 500 homes offered now, mainly in the Cape Town region.

Beyond five years, the companies plan to have more than 20 operating villages with 10 000 homes, growing the gross asset value to R20 billion from just under R2 billion now.

“We want to scale quickly because the numbers of middle to upper-income retirees in South Africa are growing quickly, so not only does the demand for quality accommodation exist, but it is swiftly outstripping supply,” Wilson said in a launch statement.

 


 

Source

MoneyWeb 

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