We hope that they continue in that vein because their initial engagement has been as I said, very, very good.įIFI PETERS: I think your shareholders are hoping that that continues as well. But I must say that the initial engagement with the insurers has been exceptionally positive, very, very professional. From a Vukile point of view, we have the cashflow, we have the facilities to continue with all of that work that needs to be done to reinstate the malls while we wait for that payout. So there may well be some delays, I guess. Here we are talking about multiple claimants in multiple provinces. Obviously that’s been in a different scenario, with an isolated incident around a mall that might’ve been damaged through social unrest, through lack of service delivery. Our experience of Sasria in the past has been very positive in terms of the speed they’ve paid out claims. We haven’t quantified it yet, but just gut feel from what we seeing that should cover it. LAURENCE RAPP: Look, we are comfortable because the family has the maximum amount of cover, which is R1.5 billion, and that should more than adequately cover the extent of the damage. Are you in a position to tell us exactly how much we’re talking about here? And also, a number of companies that are insured by Sasria are saying that they’re expecting a whole lot of delays, given the volumes of claims that Sasria is currently being hit with right now. But again, the loss of income is fully insured, as is the structural and the physical damage to the assets.įIFI PETERS: I see that you say that you’re fully insured by the maximum amount that is covered by Sasria.
Laary the looter full#
We don’t have a full picture yet, and only once we do will we know how long it’ll take to reinstate those malls.
The other two have sustained elements of structural damage. Most of the damage has been to shopfronts and roller-shutter doors, and that should be quite quick to fix. Of the six malls it looks as though four should be fairly swift to get up and running again. Only once that’s done can we start putting plans in place to reinstate the malls. At the moment we were able to get engineers and contractors on site today to start assessing the damage. LAURENCE RAPP: Well, the six malls that have being damaged will need to be repaired. As of tomorrow all these malls, other than those six, will be trading as normal.įIFI PETERS: That’s good.
We do have the six malls that have been damaged through Gauteng, and four in KwaZulu-Natal or KZN, and we are pleased to say that the rest of the portfolio has not been affected. In fact it may not damage them at all because of the insurance that we have in place. So it’s important not to create the impression that this is going to damage the earnings in any way materially. Within South Africa, we’ve got 45 shopping malls, six of which have been damaged. Half of our earnings come from Spain and half from South Africa.
Vukile’s business is diversified across two countries. LAURENCE RAPP: Fifi, I think it’s very important to put things in context and not to create panic on the financials. How badly were the affected malls damaged by the riots? Phew, how quickly things can change! The last time I spoke with you, you were speaking about improved results on the bottom line, and now we are talking about a situation that can potentially reduce the profits that may be forthcoming in the foreseeable future.
Laary the looter update#
Here to update us on the reopening of its malls, as well as the rebuilding after the destruction from the looting, is Laurence Rapp, who is the CEO of Vukile Properties. FIFI PETERS: Some shopping centres that were hit by the looting have started reopening their stores – those that were not destroyed in flames.
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