Steinhoff tumbles to new low on property value fears
The retail group says it is still considering the €1.1bn write-down on its €2.2bn portfolio of European properties recommended by independent valuer CBRE
Steinhoff’s share price slumped to a record low of R3.01 on Wednesday after news of a possible €1.1bn write-down on its European property portfolio. On Tuesday, the retail group said it was still considering the €1.1bn write-down on its €2.2bn portfolio of European properties recommended by independent valuer CBRE. But the market appears to have assumed the worst and now fears that write-offs could extend to the group’s total non-South African property portfolio. Steinhoff is dual listed in Johannesburg and Frankfurt. Meanwhile, Rand Merchant Bank Holdings (RMBH) CEO Herman Bosman said he was confident that the eastern European property assets recently acquired from Steinhoff would not be affected by the Steinhoff write-down. Steinhoff did not respond to requests for clarity on the total value of the group’s property portfolio or why only €2.2bn of it was subject to scrutiny by independent valuers. The properties that were revalued were held by Hemisphere, a wholly owned subsidiary ...
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