Hosken Consolidated Investments (HCI), through its subsidiary HCI-Whale Coast Village (HCI-WCV), is to dispose of its 65% share in the Whale Coast Village Mall in Hermanus for R600m. HCI has previously said its strategy is to divest some of its real estate assets. The group has a diverse portfolio spanning many sectors of the economy, including hotel and leisure, interactive gaming, media and broadcasting, transport, mining, property, manufacturing and financial services.
The group said late on Wednesday Whale Coast Capital Investments would acquire a 40% stake and Whale Coast Village Mall a 25% interest in Whale Coast Village Mall. The proceeds will be used to settle taxes and the debt owed by HCI-WCV to its funders of about R328m. HCI-WCV plans to distribute the remainder of the proceeds to shareholders, including HCI, which owns 80% of HCI-WCV.
The transaction is subject to conditions, including approval by the competition authorities. The Hermanus mall disposal follows the sale in December, through its subsidiary Permasolve, of the The Point Centre in Cape Town to Future Indefinite Investments 180 for R943m. The proceeds from the sale would be used to settle Permasolve’s borrowings and tax obligations, with the remaining funds used to reduce HCI’s group debt and preference share funding obligations, it said at the time.
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HCI said The Point Centre transaction would generate a substantial return on investment and strengthen the group’s cash flow position. For the half-year ended September HCI reported an 8% rise in revenue to R7.1bn, while headline earnings per share were 74% higher at 922c. Its properties contributed R54.5m to earnings in the six months ended September, while gaming accounted for R388.4m and hotels R134.1m. HCI owns large stakes in several South African gaming entities and hotels including the Montecasino hotels, Gold Reef City Hotel and Silverstar Hotel.
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