Distressed fund founded by South African tycoon Sisa Ngebulana to offload $380 million in assets

Rebosis Property Fund, a distressed property fund established by prominent South African tycoon Sisa Ngebulana, has announced its intention to offload assets valued at over R7 billion ($380 million).

The move comes as Business Rescue Practitioners (BRPs) take the reins to rejuvenate the struggling fund, identifying a total of 27 properties connected to the entity.

These 27 properties, valued at more than $380 million, comprise Rebosis Property Fund’s shopping centers, diverse office spaces, and a student accommodation facility in Mahikeng, the capital of South Africa’s North West province.

Gusi Trust, an entity benefiting Steven Herring and his family, is set to acquire properties valued at R3 billion ($162.2 million) from Rebosis Property Fund.

Entities, including Ferryman Capital Partners, Hulk Investments, Jade Capital Partners, and beneficiaries of the Ubuntu Football Trust, have orchestrated a deal to procure an additional property portfolio worth R3.5 billion ($190 million) alongside the R420 million ($22.7 million) Bloed Street property.

Rebosis Property Fund, established by Ngebulana in 2010 and renowned as the founder of the Billion Group in 1998, specializes in managing retail and office buildings primarily located in South Africa.

The company has encountered challenges in meeting its financial reporting obligations, causing delays in publishing its annual financial statements for the year ended Aug. 31, 2022, and its interim report for the six months ending Feb. 28, 2023.

These setbacks have been attributed to the ongoing audit process, encompassing the finalization of property valuations, which is being carried out by an independent third party.

Rebosis Property Fund’s struggles with financial performance have been underscored by its 2021 fiscal year results, disclosing losses of R29.41 million ($1.62 million).

The company attributes these losses primarily to the ramifications of escalating interest rates, persistent power outages, and unsustainable municipal service charges.

This decision to divest a substantial portion of its portfolio marks a pivotal moment for Rebosis Property Fund, underscoring the concerted effort by the BRPs to steer the company toward financial recovery and stability.