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Delta Property Fund, the listed black-managed and substantially black-owned property fund with significant exposure to government-tenanted offices, said yesterday that distributable income for the year ended February 28, 2019, was expected to be between R525 million and R560 million.

This reflected a decrease of between 19 and 24 percent for the previous comparable period. 

The financial results for the year ended February 28, 2019, would be published on or about June 3, 2019. 

Sandile Nomvete, the chief executive of Delta, said in November that it had been a very challenging past six months for the firm, mainly because of the continued protraction in the bulk lease renewal programme of user department leases through the Department of Public Works, which made it difficult to refinance debt at competitive rates.

LAST YEARS WORRIES 

In November last year, the fund, who has significant exposure to government-tenanted offices, was significantly affected by issues related to its government portfolio.

Nomvete said at the time that that it was a very challenging past six months, mainly because of the continued protraction in the bulk lease renewal programme of user department leases through the Department of Public Works (DPW), which made it difficult to refinance debt at competitive rates.

Nomvete said temporary refinance costs increased by 5.7 percent due to higher restructuring fees and delayed the bulk of the R600, million capital expenditure programme the company had communicated to the market.

He said altogether 59 leases totalling 227500m² had been concluded with the DPW and the Treasury in the first stage of the negotiation process.

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