Vukile Property Fund update on civil unrest damage to shopping centres
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VUKILE Property Fund’s estimated cost of repairs following unrest-related damage to six shopping centres of its 45 properties was expected to be less than 2 percent of the value of its local retail portfolio.
The company said yesterday that after spending the past week on-site with professional advisers and engaging with tenants, service providers, insurers and management, that the damage was less than expected and much less than the extent to which the company was insured.
Vukile had ample undrawn facilities to enable it to make repairs ahead of its insurance claims being finalised.
The potential loss of rental income was also insured and was expected to represent less than 3 percent of the annual rental income from South Africa.
Durban Workshop was expected to be substantially operational by the end of September and fully operational by the end of October.
Hammarsdale Junction and Pinetown Pine Crest were expected to be fully operational before the end of September.
Vukile hoped to have the food anchor tenants in Durban Workshop, Hammarsdale Junction and Pinetown Pine Crest operational by the middle of August.
KwaMashu Shopping Centre in KwaZulu-Natal had suffered significant structural damage, and represented about 60 percent of the total damage incurred to Vukile’s South African retail portfolio.
The centre was expected to be fully operational by April next year.
Daveyton Shopping Centre and Soweto Dobsonville Mall were operating at 85 percent and 50 percent capacity, respectively, having suffered damage mainly to shopfronts. These centres were expected to be fully operational by the middle of August.