Latest news with #R12.5
IOL News
13 hours ago
- Business
- IOL News
DA calls for Tshwane Deputy Mayor Modise to explain R12. 5 million unpaid rent
City of Tshwane Deputy Mayor Eugene Modise is facing criticism over allegations that his company owes the North West Housing Corporation R12.5 million in unpaid rent for the Morula Sun property. Image: Supplied/ City of Tshwane The DA in the North West wants City of Tshwane Deputy Mayor Eugene Modise to appear before a provincial legislature portfolio committee to explain a lease agreement linked to his alleged R12.5 million debt in unpaid rent for the Morula Sun property, managed by the North West Housing Corporation (NWHC). The party has asked the portfolio committee on Cooperative Governance, Human Settlements and Traditional Affairs to summon both Modise and the NWHC 'to come and account for this convenient arrangement between an ANC politician and a failing provincial entity, currently governed by a board staffed by a cohort of ANC politicians'. Modise, who is also the ANC chairperson in the Tshwane region, has reportedly denied owing NWHC, saying he won't let political gimmicks damage the relationship between his party and NWHC. He claimed his administration has transformed the entity, curbed criminal activities, and put a stop to vandalism. He highlighted that since the lease agreement his company has expensive crucial renovations and makeovers of the property. He said his company entered into the agreement before he became a councillor and deputy mayor. He declined to disclose further details, citing that the matter is being handled by the board of lawyers, saying it would be "disingenuous and inconsiderate" to comment further. CJ Steyl, DA MPL in the North West Provincial Legislature and spokesperson on Cooperative Governance, Human Settlements and Traditional Affairs, revealed that the outstanding debt owed by Modise to NWHC was exposed through a parliamentary written question posed by DA MPL Johni Steenkamp. The response to Steenkamp's question revealed that Modise's company, Mzanzi Resorts, owes the financially strained NWHC over R12.5 million in rental fees for the Morula Sun property. It was revealed that Modise entered into a lease agreement with NWHC in December 2019 for the Morula Sun property, with a monthly rental fee of R150,000. The contract was for three years but was extended to April 2026, despite millions owed in arrears. According to Steyl, the last payments were received in September 2024. 'It is notable that Tshwane Deputy Mayor Modise indicated on the addendum for the extension of the contract, dismissed the arrears amounts in lieu of repairs he brought, despite the contract stating in the lessee's obligations that Mzanzi resorts would be responsible for the maintenance,' he said. The DA has also referred the matter to Jacqui Uys, the party's Tshwane spokesperson on Finance, to initiate an investigation into Modise within the Metro council. 'The DA will not rest until every cent owed by Tshwane Deputy Mayor Modise is paid in full and that the NWHC accounts for the actions that led to this agreement between the compromised entity and an ANC politician,' Steyl said.
The Citizen
a day ago
- Business
- The Citizen
Tshwane Deputy Mayor accused of owing R12.5m in rental arrears
The DA further alleges that Modise dismissed the arrears in an addendum to the lease, citing repairs done to the property. The Democratic Alliance (DA) in the North West has accused Tshwane Deputy Mayor and MMC for Finance, Eugene Modise, of owing more than R12.5 million in unpaid rent to the North West Housing Corporation (NWHC) for the lease of the Morula Sun property through his company, Mzanzi Resorts. According to DA CJ Steyl, the debt stems from a lease agreement entered into in December 2019. DA allegations The contract, initially set for three years, was extended to April 2026 despite arrears reportedly accumulating since the last payment in September 2024. 'The Deputy Mayor of Tshwane has failed to honour a lease agreement with a struggling state entity, while extending the contract under questionable terms. 'This raises serious concerns about accountability and preferential treatment,' said Steyl. The DA further alleges that Modise dismissed the arrears in an addendum to the lease, citing repairs done to the property. However, the contract reportedly places maintenance responsibilities on the lessee. 'We have referred this matter to our Tshwane Spokesperson on Finance, Jacqui Uys, to investigate within the Metro Council,' Steyl said. 'We also request the Deputy Mayor and NWHC to appear before the North West Legislature's Portfolio Committee.' The city said it can not confirm the deputy mayor's personal business in the North West. ALSO READ: DA threats 'irresponsible': Ramaphosa 'amazed' at Steenhuisen's reaction over Whitfield dismissal Modise denies owing money Responding to the allegations, Modise said the lease agreement was signed before he took public office and that it had been impacted by the Covid-19 pandemic. 'We are not owing NWHC. We have made expensive and crucial renovations and makeover of the property, and the extension has merit,' Modise said. He said he had declared the agreement upon entering office and dismissed the DA's claims as politically motivated. 'Please don't expect me to contaminate the relationship we have with NWHC due to political gimmicks,' he said. Modise added that discussions around the lease were ongoing between Mzanzi Resorts, the NWHC board, and legal representatives. 'It would be disingenuous and inconsiderate to disclose the details while engagements are underway.' NOW READ: Leaving GNU would cause 'coalition of chaos', says Steenhuisen as DA escalates pressure
IOL News
06-06-2025
- Business
- IOL News
Fairvest reports robust interim distributable income growth and acquires five properties
Fairvest's Southview Centre in Soshanguwe. The group is steadily transforming its diversified commercial property portfolio to one that focuses on retail centres for lower income communities. Image: Supplied Fairvest, which Friday announced the acquisition of five properties for R477.7 million, increased its interim distribution for its B share by 8.8%, a performance well above inflation and which ranks it among the leaders in South Africa's REIT sector at present. Fairvest owns and manages a portfolio of 127 retail, office, and industrial properties, valued at R12.5 billion. During the six months to March 31, the group increased its stake in Dipula Properties to 26.3% from 5%, which was accretive to earnings and loan-to-value. 'Fairvest is making progress in transforming its diverse portfolio by improving the quality, while pursuing its aim of becoming a retail-only REIT servicing low-income communities in South Africa. The portfolio transformation is taking place at a slow and measured pace,' CEO Darren Wilder said in an interview. The strategy involves disposing of non-core assets and reinvesting in retail-focused properties - about 70% of revenue is currently generated from retail properties, he said. Consistent with this plan, Fairvest acquired five retail properties in KwaZulu-Natal and the Western Cape: Nquthu Shopping Centre, Ulundi Shopping Centre, Eyethu Junction, and Shoprite Manguzi in KwaZulu-Natal. These shopping centres have key food retailers, including Shoprite, Boxer, and SuperSpar, as anchor tenants. Also, an agreement was reached to acquire Thembalethu Square, outside George in the Western Cape, which is anchored by Shoprite and Boxer. Fairvest owns 51% of the issued shares in the new acquiring company. Wilder said they were 'always on the lookout' for assets that fitted their strategic focus. Fairvest disposed of one industrial property valued at R24m during the period and at a 14.3% premium to book value. Capital expenditure of R139m included R19.8m for further investments in solar initiatives. The group also invested R76.6m in fibre network infrastructure, which earns rental income. 'The portfolio continues to benefit from the disciplined execution of our strategy - vacancies remain consistently low, tenant quality has improved and the portfolio remains operationally robust. These solid fundamentals, combined with conservative balance sheet management, position the group for sustained growth,' said Wilder. There was positive letting activity in the six months, with 236 new deals and 216 renewals. Vacancies edged up to 5.5% from 4.3%. The entire 8% increase in property expenses was linked to higher municipal costs. Excluding this, operating expenses decreased by 1.9%. Property expenses were expected to increase around 7% for the year, said Wilder. Net loans of R4.4bn represented a loan-to-value of 31.8%, a reduction from 33.3% at the September 2023 year end. Cash on hand and undrawn debt facilities stood at R547.4m by the end of the interim period. Progress was made on the business continuity strategy - around 48.3% of the portfolio's gross lettable area has access to either partial or complete backup power. The number of solar plants stood at 46, with total installed capacity of 21.9 MWp. These plants provided 16.7% of the combined portfolio's electricity needs in the six months. Clean, renewable energy generated during this time amounted to R33.1m. A further eight plants were expected to add some 2.1 MWp of capacity.
The Citizen
26-05-2025
- Business
- The Citizen
Pick n Pay turnaround taking shape as it delivers on first year of recovery plan
Pick n Pay cut its trading loss by R1 billion, but the recovery plan is only in its first year and will take another two years to bear fruit. Pick n Pay has delivered on the first year of its multi-year recovery plan as the retailer's turnaround is taking shape. The group's results for the 53 weeks to 2 March 2025 were announced this morning. They show that Pick n Pay reduced its trading loss by R1 billion, well ahead of forecast, while its like-for-like turnover and customer growth see momentum rebuilding. Announcing the results, CEO Sean Summers said there are no surprises. 'We are meeting the guidance that we have given every six months, making calm and steady progress. You cannot rely on quick wins in our situation, and it will continue to be a journey as we rebuild our Institutional Memory. 'This was an important year for Pick n Pay as we executed the first leg of our operational and financial recovery. We are exactly where we said we would be when presenting the strategy last May, and in some aspects, we are tracking slightly ahead. 'Particularly pleasing is the reduction in our Pick n Pay trading loss by 64% after predicting a 50% reduction.' ALSO READ: How did Pick n Pay do it? From technically insolvent to growing sales in months Recapitalising Pick n Pay The first of its six strategic priorities announced in May last year was to recapitalise the Pick n Pay Group. In this financial year, the group completed its two-step Recapitalisation Plan, raising R12.5 billion through the Pick n Pay Rights Offer (R4.0 billion) and the Boxer JSE listing (R8.5 billion) and restoring the group to a net cash position of R4.2 billion. 'We started to give much-needed attention to our core Pick n Pay supermarkets, and we are pleased to see the early results in reporting positive like-for-like sales growth, notwithstanding the sustained pace of new store openings by our competitors in a restrained and competitive market,' Summers said. Accelerating like-for-like sales The second of its priorities was to accelerate like-for-like sales growth, and the group's turnover for the 53-week period increased by 5.6%. Over the past 18 months, Pick n Pay company-owned supermarkets delivered consistent gains in like-for-like sales growth, improving from -0.5% in the second half of the previous financial year to +3.6% in the second half of the current financial year. 'Our franchisees also showed steady positive recovery, and this positive like-for-like momentum continued in the first eight weeks of the financial year.' Summers also pointed out that the group maintained its focus on keeping selling prices down, recording inflation in Pick n Pay of just 2.1% for the current financial year, sharply down on the previous financial year's 8.2% and well below Statistics SA's food price inflation of 3.9%. ALSO READ: Can Pick n Pay's new look fix their troubles? New store design revealed Resetting Pick n Pay's store estate The third priority was to reset Pick n Pay's store estate and the group made considerable progress either converting to Boxer, franchising or closing those stores where there was no prospect of their returning to profitability, Summers said. 'Importantly, a great deal of focus was put into certain loss-making stores, with some now returning to profitability. We also started opening and committing to new stores and will increasingly refurbish our supermarkets to meet and exceed customer expectations.' Pick n Pay's leadership and people The fourth pillar of the strategy was leadership and people. The ongoing focus on driving operational execution and restoring its Institutional Memory required strong leadership and engaged employees. Summers said key steps have already been taken, including staff training to improve the customer experience, reinstating regional leadership structures and launching a campaign to reignite employee pride and purpose. ALSO READ: Will Boxer listing on the JSE save Pick n Pay? Strengthening partnerships The fifth pillar, strengthening partnerships, was clearly demonstrated in the tie-up with FNB e-Bucks, which already helped to attract customers across all segments. eBucks recently won three major awards, including best financial services loyalty programme in the world. Summer pointed out that the new four-year Tier 1 Springbok rugby sponsorship further amplified brand visibility and national pride. 'We celebrate the extraordinary role that our Springboks and sport play in unifying our country.' He said the retailer remains focused on innovation, adaptability and income diversification through its popular Smart Shopper programme, growing retail media capability and omnichannel platforms, while expanding value-added services revenue. 'More good news was growth of 48.7% in online sales for the 53 weeks, led by asap! and PnP groceries on Mr D. Pick n Pay asap! has grown to 600 locations and franchisee adoption of asap! doubled in two years, with new growth potential unlocked with the launch of the new asap! App. 'The growth in scale now resulted in achieving profitability on a fully costed basis. 'We are very happy with our balance between clicks and bricks,' Summers said. ALSO READ: Boxer shares worth R53 million traded since listing Good news from Pick n Pay Clothing with 11.6% growth Pick n Pay Clothing delivered 11.6% growth from standalone stores in the new financial year and reported market share gains. It opened net 30 company-owned stores during the financial year to bring the total estate to 415 stores. 'When I returned in October 2023 I stated that the recovery of Pick n Pay would be a multi-year process and that things would get worse before they got better. 'It is our sense that we see this unfortunate chapter now bottoming out and we have recalibrated our recovery programme to break even in financial year 2028. 'The journey of restoring Institutional Memory for long-term sustainability and success continues, and we are investing ahead of the recovery, ensuring a strong future-fit business with energy and conviction. Importantly, our customer base is steadily growing as one by one they experience the change. 'It is with a passionate sense of pride and honour that I have confirmed an extension to my contract until May 2028, thereby ensuring leadership continuity in the short term, followed by an orderly succession process,' Summers said.
The Citizen
05-05-2025
- Business
- The Citizen
AA warms of ‘significant implications' of underfunding Rea Vaya bus service
The Johannesburg municipality says minibus taxis still account for 91% of monthly trips, leaving Rea Vaya and Metrobus lagging behind. The Automobile Association of South Africa (AA) is lamenting a potential public transport crisis brewing in Johannesburg. The entity accused Rea Vaya of mismanagement, which has dented public confidence and impeded low-income commuters. Despite having millions earmarked for bus services in the coming financial year, the AA believes more needs to be done to provide customers with an attractive public alternative. 'Not just a financial loss' The AA stated that the Johannesburg municipality had lost more than R300 million from a public transport grant due to operational failures. 'Originally earmarked to support and expand the Rea Vaya network, the lost funding carries significant implications, not only for the city's mobility agenda but for road users, particularly for low-income commuters who rely on affordable and reliable transport options,' stated the AA on Monday. 'This is not just a financial loss, it's a missed opportunity to improve the lives of thousands of Johannesburg residents who depend on public transport to access work, education, and essential services,' stated AA CEO Bobby Ramagwede. The AA added that the cost of private vehicle ownership was prohibitive and that public transport was a vital avenue for the personal movement of the poor. 'The implications of this funding go beyond mismanagement: they highlight a chronic inability to plan, execute, and maintain public transport systems with integrity, transparency, and accountability,' the AA added. Budget for Rea Vaya and Metrobus In the Johannesburg municipality's 2025/26 Integrated Development Plan (IDP), the city states that 10.2 million trips are made monthly via minibus or taxi. The city states that this accounts for 91% of all public transport trips in Johannesburg, leaving Rea Vaya and Metrobus trailing. The IDP states that Metrobus serviced 3.3 million passengers via 229 routes in the last financial year, while the Department of Transport aims to have Rea Vaya facilitating 13 million passenger trips annually by the end of the year. Rea Vaya's proposed budget for the coming year includes R12.5 million for land acquisition, R25 million for station rehabilitation and R150 million for an automated fare collection system. For Metrobus, at least R90 million has been proposed for the entity for the next financial year, including R32 million for new Metrobuses. New route to success The AA's sentiments suggest that the funding would be in vain if Rea Vaya did not develop a clear vision of its future. 'Without decisive action and a turnaround strategy, Johannesburg risks further isolating low-income communities and increasing reliance on private vehicles, which could worsen traffic congestion, road safety risks, and environmental strain,' the AA stated. The entity called for engagement with civil society and collaboration with national stakeholders to help realise Rea Vaya's potential. 'We cannot afford to waste time or resources. Johannesburg residents need a transport system that works — and leadership that makes it happen,' NOW READ: R140m Rea Vaya depot stalls as informal settlement blocks progress
