Tower sells Croatian property 

In a deal worth R228m. 

Tower Property Fund, which owns properties in South Africa and Croatia, said it has sold a retail property in Croatia for €12.4 million (about R228 million), which will be used to reduce its debt.

Tower is led by Marc Edwards (pictured).

The sale of the Vukovarska retail property was made at an 11 percent premium to its book value, “reflecting the strength and desirability of Tower’s Croatian assets, even amidst the current market uncertainty”, the group said.

The Croatian assets are held by its subsidiary TPF International, of which Tower owns 74 percent. The group will receive €6.5 million (R120 million) in net proceeds, which will be used to reduce its euro-denominated debt, which stood at about R1.2 billion as of the end of November.

“Given the low cost of the euro debt, this will dilute distributable income, but will strengthen Tower’s balance sheet and substantially reduce Tower’s currency-related risks, which the board considers a more pressing concern in the current environment,” the group said.

 Tower owned 43 properties valued at R5 billion, with six assets in Croatia accounting for 32 percent as of its half-year to end November.