Our opinion on the current state of CVW

1 dic 2023

Castleview (CVW) is a real estate investment trust that owns two properties - a shopping mall in Port Elizabeth in the Eastern Cape, "Pier 14" which the company describes as a "themed lifestyle center" with 75 stores and a gross lettable area (GLA) of 30381 square meters and Cravenby Shoprite which has a GLA of 3301 square meters. It intends to buy other retail centers throughout South Africa. In its results for the 6 months to 30th September 2023 the company reported revenue of R1,04bn compared with R30,25m in the previous period and a headline loss per share of 18,53c. The company's net asset value (NAV) increased by 37,69% to 840,11c per share. The company said, "During the reporting period, the total assets of the Group decreased to R21.7 billion (March 2023: R22.1 billion) with a corresponding decrease in debt funding to R10.2 billion (March 2023: R10.6 billion), primarily as a result of the successful disposal of Enyuka by the Group". The share has no recorded trades on the JSE. Before it can be of interest to private investors it will have to achieve some scale. The company's shareholders approved an offer by Growthpoint to buy 51% for R2,9bn on 26th November 2019. We expect that once this deal is done the company may be delisted. On 23rd February 2023 the company announced that it had sold 47,8m shares for R6.48 per share to raise R310m.