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Oryx rules out Grove Mall purchase, to complete Dunes Mall acquisition

By February 01, 2023 0
Oryx rules out Grove Mall purchase, to complete Dunes Mall acquisition

Oryx Properties says it is not in a position to buy the Grove Mall, which is reported to be on the market at a N$1.8 billion valuation.

The property firm, which recently acquired the Dunes Mall at Walvis Bay for N$648.8 million, is currently on the market to raise capital to complete the transaction.

Dunes Mall is the second largest mall in Namibia after Grove Mall of Namibia, also developed and managed by Atterbury.

Oryx Properties CEO Ben Jooste when quizzed by The Brief on whether the Namibian Stock Exchange listed company will also make moves to acquire the Grove Mall, said, “not at this point in time.”

He said the property company was working to raise part of the funding of the N$648.8 million price tag placed on the Dunes Mall by Atterbury, with a portion of the proceeds from a N$248 million debt raised during a bond issuance that was oversubscribed in November 2022.

“A normal debt and equity raise will be required to complete the capital raise for the acquisition. On that basis, not all of the funding has been raised as of yet and once ready Oryx will come to the market with the relevant information The intention is to fund the acquisition through the raising of equity and senior debt subject to competition commission approval,” he said.

On the rationale of the acquisition of Walvis Bay mall, Jooste said: ”Oryx’s strategy is to increase the size of the fund by circa 60% over the next three years with an emphasis on diversifying geographically within Namibia.”

He said the listed company was planning acquisitions this year as part of its strategy to diversify its asset base in Namibia with a core focus on retail and the industrial sectors.

“This strategy will be phased over the next two years with the groundwork already having commenced on some of the proposed acquisitions. Oryx will also review other important sectors for acquisitions in the medical, storage and residential sectors,” Jooste said.

Adding that the company was still to dispose of some of its properties, after announcing plans to dispose of its Channel Life building as it moves to reposition its property portfolio inline with its strategy to grow the fund to N$4.5 billion.

“Oryx has not completed any disposals recently although they are looking to exit B and C grade offices,” he said.

He said the company continues to offer good returns for its retail investors in Namibia.

“Oryx Properties Limited provides every Namibian the opportunity to own a piece of real estate backed by a solid portfolio of retail, industrial, offices and residential assets in Namibia. Its share price is one of the two best share performers in 2022 on the Namibian Stock Exchange with returns of between 9% and 10% during 2022,” Jooste said.

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Last modified on Thursday, 02 February 2023 18:34
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