SA REIT has been working hard with the Property Industry Group to ensure systemic stability for South Africa’s property sector and its financial sector stakeholders.
We approached The Banking Association South Africa (BASA) to get clarity for a common framework across four issues: establishing property values in the current environment, the banks’ views on covenant breaches, the refinancing of existing facilities, and how the banks will handle short-term cash flow challenges because of COVID-19. We received a constructive response from BASA.
“The feedback that we have received in our discussions with the individual banks also indicates that they are pragmatic, positive and and willing partners to the property industry. We urge our members to engage proactively, swiftly and transparently with their banks,” says Laurence Rapp, who heads the PI Group subcommittee responsible for the property industry's engagement with the banking sector. The subcommittee comprises Laurence Rapp of Vukile, Malose Kekana of Pareto, Raj Nana of Attacq, Leon Kok of Redefine and Dirkje Bouma of Growthpoint.
Read the full BASA letter here: