Investigating Management-Led Corporate Turnaround Strategies Compared to the Application of Business Rescue Proceedings: A Case Study of Rebosis Property Fund Limited

Mamekwa Katlego Kekana and Marius Pretorius

AfRES from African Real Estate Society (AfRES)

Abstract: The business rescue proceedings of Rebosis Property Fund Limited, a registered and publicly listed Real Estate Investment Trust (REIT), represent a significant case study in the South African real estate sector and business rescue regime. In response to ongoing liquidity challenges, high debt levels, and a dwindling share price, several management-led turnaround interventions were implemented over the years, with limited success. Combined with a failed international expansion strategy to the United Kingdom, the Company experienced severe financial distress and decided to voluntarily enter business rescue in August 2022, a critical move aimed at rehabilitating the Company. This study aims to investigate the effectiveness of corporate turnaround strategies implemented by the management of Rebosis compared to the application of business rescue proceedings. This study follows a qualitative approach by analysing the annual integrated reports for the Company for the period 2013–2022 and the adopted 2023 business rescue plan. The study’s findings indicate that for large, complex, highly regulated companies such as Rebosis, business turnaround interventions should be implemented early to circumvent liquidation and safeguard stakeholders’ interests. This research, the first to focus on business rescue proceedings for REITs in South Africa, offers valuable insights for practitioners, policymakers, and scholars.

Keywords: business rescue; financial distress; real estate investment trust (REIT); Restructuring; turnaround strategy (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
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