PROPERTY: Intriguing Property Developments
Recent Western Cape Business News
THERE have been a number of intriguing developments in the local property market in the last few weeks.
Well know local businessman Sybrand van der Spuy has – via Cape Point Vineyards - brought an application that could put Pinnacle Point under a Business Rescue Plan.
Pinnacle Point, which holds the Pinnacle Point golf and leisure estate on the Garden Route as its flagship property, is heavily indebted and the chances of generating sufficient cash flow to complete various property developments (including Romansbaai near Hermanus) look slim.
There was a glimmer of hope for Pinnacle earlier this year when a German consortium expressed interest in buying Pinnacle Point.
But in June the consortium had still not provided the required proof of funds and guarantees. The Pinnacle board was left to try re-engaging the consortium, and was – the last time CBN looked – “in the process of considering its options in this regard and other offers that are being formulated by other interested parties.”
Newly listed Vividend Income Fund – headed by the former CEO of local forex business Master Currency, Ari Jacobson – augmented its Western Cape portfolio exposure with, of all things, a shopping centre in Beaufort West.
Vividend paid R39 million for the Beaufort West Shopping Centre, which apparently will offer a rather nifty yield of 11.3%.
To date Cape Town-based Vividend’s only other Western Cape property has been the Gradner Street building in Central Cape Town, which was acquired for R55 million.
The Beaufort West shopping centre is a relatively new development, having been completed in late 2007. It holds mainly small trading formats with four major tenants - Pick n Pay being the anchor tenant.
It will be interesting to see whether Vividend targets more properties in small centres around the Western Cape during its portfolio building phase.
Bombed out hotels and lesiure group Queensgate renewed its cautionary announcement around a deal with Dale Capital.
Rumours around Dale injecting its Shelley Point Hotel property into Queensgate are still swirling. But CBN finds it strange that matters – the first cautionary was issued in November last year - are dragging on so long seeing as Dale is a significant shareholder in Queensgate.
And it’s not like other shareholders and creditors have got too many other ‘rescue’ options.
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