Fairvest finalises Tokai Junction sale

15th July 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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The due diligence for the disposal of JSE-listed real estate investment trust Fairvest Property's Tokai Junction property to FPG Holdings for R180-million, has been completed.

Tokai Junction is a 7 618 m2 retail centre in Constantia, in the Western Cape.

Fairvest CEO Darren Wilder says the disposal value represents good value for Fairvest – a 3.1% premium to book value at December 31, 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 company will use the proceeds to pay down debt to maintain a robust balance sheet.

The transaction is, however, still subject to approval by the Competition Commission.

“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.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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