Real Estate Investor Magazine South Africa April/May 2019 | Page 43

RETAIL
RETAIL IN AFRICA
The Edcon Lifeline Deal in Numbers
A deal was struck in March to recapitalise Edcon, one of the country’s largest retailers and retail
space tenants. Edcon is simply too big to fail and the Public Investment Corporation and listed
landlords came together in what is looking like a win-win deal.
The deal: cash + rent reductions = R2.7bn in debt settled
17%
Edcon brands:
Edgars, Jet, CNA, Thank U
Employees: +/-30 000 1350 outlets
Around R5bn in lease agreements
Brands sold off in 2016: Legit,
La Senza (closed), Red Square (closed)
Planning to reduce space by 17% over 5 years
REITS with major exposure to Edcon:
Attacq: reducing exposure to 3% by Oct 2019
3%
Liberty Two Degrees: Reduce from 5.3% to 4.3%
by end-December 2019
Redefine Properties: GLA exposure of 78 760sqm
(down from 122 856sqm at August 2018).
Contributed R54.6m of equity. Agreed to rental
§reductions of as much as R13m
Hyprop Investments:
9.2% of its gross lettable area
Growthpoint:
Contributed R110m for equity stake. No
rental reductions agreed to. Decreasing
exposure by 18,000m over next two years.
9.2%
5.3% to
4.3%
SA Real Estate Investor Magazine APRIL/MAY 2019
41