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After announcing that it will dispose of its portfolio of office assets worth R6.3-billion, the board of directors of Rebosis Property Fund said Sisa Ngebulana – Founder and Chief Executive Officer, is retiring.

The disposal of assets will bring down the company loan-to-value (LTV) level and optimise its balance sheet to real estate investment trust standards, closing the curtain for Ngebulana’s three year stint since the board brought him to stabilise the company.

Rebosis was facing financial crises which included asset write downs of its United Kingdom assets precipitated by Britain's decision to leave the European Union (Brexit) that caused a storm in the financial markets and investments, including assets write-downs. 

"I personally and on behalf of the board express our heartfelt thanks to Sisa for the sterling work he has done in leading Rebosis’ journey, particularly during a challenging period in its history,” said Dr Anna Mokgokong, Rebosis chairman.

“The dedication and passion with which he fulfilled the company’s critical mandate is commendable. A clear strategy and sound action plans are in place and major projects to re-position the group are being completed, leaving the company in a position for growth for the future,” said Dr Mokgokong.

The board has picked Otis Tshabalala as the next CEO of the company which became the first black-owned and managed property fund to list on the Johannesburg Stock Exchange when it made its debut about a decade ago.

“With his wealth of experience and knowledge in the property sector, we look forward to Otis’ contribution to Rebosis’ growth. He will be an outstanding leader, and he has our full confidence,” she said.

With more than 28 years’ experience in the property sector, Otis was previously Chief Investment Officer and Chief Operating Officer of Delta and played an instrumental role in its listing before joining SA Corporate two years ago.

“In these changing environments, every company faces challenges. Rebosis was no exception. 

"It has been a privilege to lead this company during the past three years.  Initially the board gave me a one year timeline to stabilise the company when it was facing financial challenges, more new challenges emerged as I started which included massive assets write downs as a result of Brexit uncertainty and local conditions. 

“I focused the team on fundamentals and operational efficiencies, preserved cash resources through retaining dividends and restructuring debt through this period and as result, the company met all its financial obligations and generated surplus cash with all debt facilities renewed each year.

“Following a long negotiating process, the sale of 32 office assets at R6.3-billion, has now been signed, subject to fulfilling conditions thereto.  Upon fulfilment of all conditions, shareholder voting and transfer of the properties, the company will now have a debt of around R3bn instead of R9.3billion, thus reduce the LTV to 42%, in line with best practice.

“I have sorted the financial crises and the assets write down challenges that gave rise to high LTV. I have fulfilled the responsibilities requested by the board. It is time the company gets fresh hands to steer its greater future,” said Ngebulana.

“I am extremely proud of all we have accomplished. With an exceptional management team, hard-working and dedicated employees and key strategic investments, the company is well-positioned for continued momentum this year and beyond.

“I will remain a passive large shareholder as I continue to have confidence in the people, assets and future of the business,” he said.

Ngebulana founded Rebosis in 2010 and has won various awards including Entrepreneur of the Year Award in 2006, Pioneer award and African Business Excellence in 2014.

Through his company Billion Group, Ngebulana developed a number of regional shopping malls in South Africa, including Hemingways Mall, Forest Hill City, Mdantsane City, B.T. Ngebs City and Bay West City in Port Elizabeth. Four of these malls were later sold to Rebosis.

An admitted attorney specialising in commercial litigation, he spent seven years at Eskom specialising in property and finance.

He is a past president of the South African Council of Shopping Centres and has been a director of several companies including Truworths International and the Construction Industry Development Board.

Issued by the Media and Writers Firm on behalf of Rebosis Property Fund