The sale of the upmarket R1,3bn Melrose Arch in Johannesburg to the Atlantic Corporate Finance (ACF) property consortium has fallen through, but the owner of the mixed-use commercial, retail and residential precinct, the Sentinel Mining Industry Retirement Fund , is tight-lipped about why the deal was scrapped.
Last week speculation was rife that the deal had fallen through because the consortium could not come up with guarantees for the purchase price. Andre le Roux of ACF was unavailable for comment yesterday.
Sentinel CEO Eric Visser confirmed yesterday the deal with ACF had been cancelled , but declined to give details.
The deal followed a three month tender process. Visser said he could not comment on whether or not other bidders had expressed interest .
Sentinel announced in February that it had sold Melrose Arch to ACF, regarded as unknowns in the property industry, and that the deal was subject to various approvals including that of the Competition Commission.
The deal came as a shock to the market because well-known property players the Cavalleros Group and Sycom were the other bidders in the tender process.
The ACF consortium was said to have missed the July 5 deadline to produce guarantees for the purchase price.
It was also reported that its shareholders had little prospect of raising the money. The terms of sale had to be changed, and it seemed that new shareholders were being sought to save the deal.
Business Day
Publisher: Business Day
Source: Business Day
