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Eastern Cape-born real estate mogul Sisa Ngebulana has returned to regain a significant stake in the embattled real estate fund Rebosis, a group he founded in 2010 and listed on the JSE in 2011.
This week, Ngebulana invested R114 million in the group, through two transactions involving its Amatolo Trust.
The deals, which were initially announced in a JSE Sens statement after the market closed on Tuesday, effectively raise its stake in Rebosis from around 5% to 31.26%.
This means that Ngebulana returns to the top as Rebosis’ largest individual shareholder, ahead of rival Zunaid Moti, who has made a move for the group in recent months.
Moti, a Joburg auto dealership mogul, first bought a stake in Rebosis in April and has increased his stake to around 18%.
Hemingways Mall of Rebosis Property Fund in East London. Image: supplied
“Before the start of the company’s closed period on September 1, Dr. Ngebulana acquired just under 161 million common shares of the company at 45 cents per share and another 36.5 million common A shares at 115 cents per share. action to increase its total stake in Rebosis to 31.26%, ”the group said in a press release on Friday.
“The transactions were carried out off-market through Amatolo Trust, of which Dr. Ngebulana is trustee and discretionary beneficiary,” he added.
The statement confirmed that Ngebulana is once again the largest shareholder in the company, following the transactions.
“As the largest shareholder in Rebosis, this transaction underscores my confidence in the future of the company and I remain confident that our short-term challenges will soon be overcome as we slowly but surely address current challenges, one at a time, with a clear vision and strategy, ”said Ngebulana, who is also CEO of Rebosis.
The group was listed on the JSE on May 17, 2011 with an initial portfolio of R3.3 billion that has since grown to R14.1 billion. However, Rebosis has faced a growing debt burden in recent years, which has contributed to a drop in its share price.
Read: Rebosis hopes to maintain Reit status, despite not paying dividends
Rebosis has predominantly become a real estate investment trust focused on retail trade (Reit). Its main regional shopping center assets include Baywest Mall (Port Elizabeth) and Hemingways Mall (East London) in the Eastern Cape, as well as Forest Hill City in Centurion, among other smaller centers. However, the group still has a commercial portfolio that is largely rented out by the government.
“Despite the macroeconomy and real estate facing serious headwinds following the Covid-19 lockdowns, our asset base has proven resilient during this time,” Ngebulana noted on Friday.
“Our office portfolio, consisting primarily of government leases, has maintained its defensive nature well and has supported our retail operations where some rental assistance was required,” he said.
“Now is a very exciting time to get involved in ownership, as changing fundamentals bring both risk and opportunity. I have the courage and conviction that our plans are aimed at the success of this business, ”added Ngebulana.
