Star 2023-05-10

EQUITES Property Fund, the JSE-listed real estate investment trust (Reit) focused on the fast-growing logistics sector, is considering selling its UK R44 billion development pipeline after rising interest rates resulted in its property values there falling by a hefty 21% in the past year. The share price responded, falling 8.93% to R13.94 by midday yesterday, and closed 7.23% lower at R14.24 on the JSE, well down from R20.22 that it traded at a year ago. It was also disposing of non-core South African and UK assets to unlock capital and fund its development pipeline, and has shifted its focus to the local market. “Given the change in market fundamentals in the UK, Equites has noted its primary geographic focus for acquisitions and developments will shift to South Africa where…

This is likely to add pressure on the grid and further elevate the risk of load shedding ESKOM looks set to continue struggling to keep the lights on as it has pushed the deadline for returning Unit 1 at the Koeberg nuclear power station by at least a month-and-a-half amid delays on the life extension project. This became apparent yesterday when Eskom told Parliament that the current delay to return Koeberg online was around 45 days. This will likely add pressure on the grid and further elevate the risk of load shedding in the winter months as electricity demand increases in the absence of 920MW generated from Unit 1 Koeberg, an equivalent of one stage of load shedding. Eskom is already averaging stage 6 load shedding every week, and…

STEINHOFF International’s creditors will be feeling that bit more secure after the troubled company yesterday said it had sold its subsidiary, Mattress Firm, to Tempur Sealy International, for $4 billion (R73.34bn). Mattress Firm is a speciality bed retailer in the US, with more than 2 300 retail stores nationwide. Tempur Sealy and Mattress Firm's combined global footprint will include about 3 000 retail stores, 30 e-commerce platforms, 71 manufacturing facilities, and four state-of-the-art R&D facilities worldwide. In 2017 Steinhoff made headlines for accounting fraud in what was said to be South Africa’s biggest corporate fraud. The company, which is technically insolvent with a R1bn market value, has subsequently been forced to sell off assets to settle billions in rand of claims. The troubled retailer’s shares closed 8%…

KAROOOOO, a Nasdaq and JSE-listed distributor of mobility asset management solutions, has reached an agreement with BMW and Mercedes-Benz in Europe to fit vehicles with telematic equipment, and another five to six vehicle manufacturers might be signed up in the new financial year, CEO and founder Zak Calisto said yesterday. Interviewed at the release of Karooooo’s results yesterday, he said the equipment was required to comply with EU legislation to monitor driving safety such as not driving continuously for more than four hours at a time. “Many other companies are working hard to be able to supply the right equipment, but we have so far been the only company that has the equipment that complies with EU standards,” he said. He said financial benefits from these agreements may take a…

SIBANYE-Stillwater has flagged South Africa’s worsening energy crisis and an increase in organised crime as occasioning an increasingly uncertain operating framework that has further been compounded by a plunge in its platinum production despite its gold operations swinging back to profit- ability. Electricity supply challenges hammered Sibanye-Stillwater in its South African and Zimbabwean operations during the quarter to the end of March. The company, just like other South African corporates, is now investing heavily in alternative power supply solutions. “There are no immediate solutions to improve national energy security in South Africa. We are pursuing self-generation projects that will improve the security of energy supply. The economic and operating outlook remains challenging and uncertain,” Sibanye-Stillwater said in a March 2023 quarterly trading update yesterday. The deteriorating “quality of public…

IN A BID to assist manufacturers to increase their capacity and improve their competitiveness, the private sector in partnership with Minister of Trade, Industry and Competition Ebrahim Patel launched the Localisation Support Fund (LSF) yesterday. The LSF describes itself as a non-profit company funded by the private sector, and it is focusing on localising manufacturing in South Africa by unblocking challenges in the sector. The LSF’s goal is to contribute to the reduction of imports, promotion of competitiveness, and increased capacity of manufacturers to produce optimally mainly for exporting. The LSF’s mandate is to partner with stakeholders in the industry to facilitate interaction between manufacturers and buyers (supply and demand participants). It provides funding for industry research and the deployment of technical experts to unlock challenges and accelerate opportunities for…