Lembede buys stake in property group.

Posted On Tuesday, 15 July 2003 02:00 Published by eProp Commercial Property News
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Black economic empowerment consortium Lembede Investment Holdings has bought a 16,5% stake in Rand Leases Properties.

Property-Housing-ResidentialRand Leases Properties MD Grant Fischer said the deal was the first of its kind for the property loan stock company and pointed to interest from the empowerment companies in listed property, particularly entrepreneurial property companies like Rand Leases which undertook speculative developments.

 Fischer said Lembede had expressed interest in acquiring a large chunk of Rand Leases' issued share capital.

 "We have been encouraging an association with this particular black economic empowerment consortium. We think there will be benefits for the company flowing from it," he said. "Naturally an association of this nature can be beneficial in terms of access to properties and relationships with government departments."

 The deal moved the share price up 7,7% from 65c to 70c. Fischer said that about 11,5-million shares at 70c were bought in the R8,07m deal.

 Fischer said Rand Leases Properties was looking into further property acquisitions and ventures in Cape Town and the surrounding areas. He said the company had been listed as a property loan stock company on the JSE Securities Exchange SA since 1997. Prior to that it was a mining company.

 "There was a strategic decision to discontinue mining operations and focus on the land we owned," he said.

 Fischer said Rand Leases, which has a market capitalisation of between R50m and R70m, specialised in low cost housing, land developments and was now interested in gated security developments in the Cape Town.

 The Cape Town expansions were expected to significantly increase its market capitalisation.

 Little is known about this empowerment group and attempts to obtain comment from them were unsuccessful.      

Last modified on Monday, 12 May 2014 14:12

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