ANSA McAL pulls out of Trincity Mall purchase

ANSA McAL, the conglomerate named last year as the preferred bidder to acquire Trincity Mall, has withdrawn from the transaction.

As a result, the process to find a new buyer has returned to the drawing board.

However, the Joint Liquidators at Grant Thornton, have identified the sale of Trincity Mall as their top priority for the next six months.

In May last year, ANSA McAL was informed by Ernst & Young that it was the preferred bidder to acquire Trincity Mall.

However, according to the 13th report of the Joint Liquidators by Grant Thornton, filed in the High Court on Thursday, the preferred bidder had withdrawn.

“The preferred bidder, who was selected as part of the initial bid process, has withdrawn from the sale prior to executing the SPA (Sale and Purchase Agreement),” it stated.

“In light of this development, Ernst and Young (EY) (in its capacity as broker), has facilitated a new bid process, with the deadline for submission of indicative bids having been September 16, 2024. The JLs (Joint Liquidators) have considered the indicative bids and further due diligence by the prospective purchasers is ongoing with the final binding bids to be provided by November 22, 2024,” the report stated.

In its previous report to the High Court dated October 2023, the liquidators noted that, in April 2023, they had received a total of four offers—two for the shares in Trincity Commercial Centre Ltd and two for the property assets of Trincity Mall.

“None of the offers received were equal to or higher than the approved, minimum sale value(s) ascribed to the asset via the order made by the Court on November 11, 2021 which, inter alia, permits the joint liquidators to sell the shares in TCCL or Trincity Mall,” the 12th report stated.

While liquidators were granted approval by the High Court for the sale of Trincity Mall in 2021, it was only put on the market in September 2022.

“As previously reported, any offers received which are lower than the minimum sale value approved by the Court, will require the JLs to apply to the Court for approval to complete the sale,” the latest report stated.

“An issue that has emerged during the sales process is that certain lands on which Trincity Mall was constructed are owned by different entities within the CLF Group, necessitating the consolidation of the lands into a single entity on a tax-efficient basis. Progress is being made in collaboration with the companies, the JLs, and attorneys working with the Board of Inland Revenue (“BIR”) to consolidate the lands,” it stated.

“Furthermore, the JLs have maintained their participation in the bi-weekly meetings of an HCL project team, as mentioned previously, to oversee Trincity Mall’s divestment strategy, manage operations, and advance the sales process,” it stated.

Sale of Long Circular, Tru Valu proceeding

Trincity Mall and Long Circular Mall were considered the jewels of Home Construction Ltd (HCL), a subsidiary of CL Financial (CLF).

“As outlined in Previous Reports, preparations were ongoing in respect of the divestment of Long Circular Mall and/or Plaza Development Ltd. This work continued during the Reporting Period and resulted in an application to the Court for directions where the JLs sought sanction to proceed with a sales process. The Court approved the sale process on September 11, 2024,” it stated.

According to the report, HCL’s management, under the supervision of the JLs, has continued to work closely with tenants at the malls to put in place payment plans and reduce accumulated rent arrears.

“As a result, the average accounts receivable balance across the malls has further decreased during the Reporting Period,” it stated.

“Importantly, the implemented strategy has resulted in tenancy rates remaining relatively stable despite the difficult conditions experienced by the retail tenants. This is significant since Trincity Mall is in a sale process and an application for sanction to sell Long Circular Mall has been filed with the Court. As the intention is to sell the malls, in order to preserve and maximise value, the JLs have worked to maintain strong tenant relationships while also ensuring that rental income is collected in a timely manner,” the report stated.

The report stated that work is also taking place with respect to the plans to sell Tru Valu.

“Similarly, the JLs are pleased to advise that further to preparatory works in relation to a potential sale of the Tru Valu supermarket chain, an application has been made to the Court for sanction of the proposed sale process. The Court approved the proposed sale process on 11 September 2024,” it stated,

“The Tru Valu chain has faced difficult trading conditions, and the JLs’ staff have been actively assisting management in efforts to manage costs, increase sales, and address historical industrial relations issues,” the report stated.

According to the report, among the operational matters that continue to be addressed are the monitoring of stock management and purchasing within Tru Valu supermarkets, the development and growth of a customer loyalty programme to boost sales, and the handling of trade union negotiations and staffing needs.

The CLF Group had earlier sold HCL’s Valpark and Atlantic Plaza malls.