Patrice Motsepe ventures into property with 20% stake in property developer Val de Vie Investments

Posted On Friday, 24 June 2016 01:19 Published by
Rate this item
(1 Vote)

Billionaire businessman Patrice Motsepe’s African Rainbow Capital (ARC) has made its first foray into property‚ buying a 20% stake in Val de Vie Investments‚ which is expanding a high-end residential estate in the Western Cape.

 Patrice_Motsepe

 

The residential development‚ Val de Vie Estate‚ is located in Paarl and is undergoing a major expansion to include a further 300ha of land.

ARC is an unlisted company that is headed jointly by Johan van der Merwe‚ former CEO of Sanlam Investments‚ and Johan van Zyl‚ former CEO of Sanlam. It is a subsidiary of Sanlam’s empowerment partner‚ Ubuntu-Botho Investments. Van Zyl and Van der Merwe have both signed on to be co-CEOs for a 10-year period. ARC has been given about R10bn to invest in various sectors. Of this‚ about R1.5bn will be earmarked initially for property investments.

“This 20% deal is our first property play. We see it as a strong opportunity to gain exposure to a very well-run company. We really like the management team at Val de Vie Investments‚” Van der Merwe said.

He did not disclose the exact value of the 20% stake‚ but said it was worth R100m-R200m.

The investment company was planning to make another real estate acquisition in the near future that would be worth between R500m and R1bn.

“We want to have an exposure of about R1.5bn to property assets by the end of this year‚” Van der Merwe said.

“This deal will support future developments on and around the estate‚ such as the construction of a bridge over the Berg River that will connect with the R45 provincial road.”

Motsepe‚ who is the chairman of ARC‚ said Val de Vie was an exciting investment. “We see immense value in Val de Vie‚ and are pleased to be involved with this world-class development and its visionary team.”

Source: BD

Last modified on Friday, 24 June 2016 07:48

Most Popular

Equites Property Fund’ prime logistics portfolio delivers exceptional returns

May 04, 2022
Andrea Taverna-Turisan
Equites Property Fund Limited today announced growth in its distribution per share of…

When is eviction legal? All you need to know about dealing with problem tenants

May 04, 2022
Evictions
Buying an investment property is great, especially when you’ve chosen a good location.…

Steilloop Shopping Centre makeover exceeds customer needs

Apr 22, 2022
Rural Limpopo's Steilloop Shopping Centre was bought by developer, GMI Property Group…

Deadline looms for energy performance compliance for commercial buildings

Apr 25, 2022
Energy certiticate
By 7 December 2022, commercial properties in specified sectors must have obtained their…

First quarter Rode’s Report raises doubts over the Sectional Titles Schemes Management Act

Apr 25, 2022
Default Image
The latest issue of the Rode’s Report has brought into question the practicality of the…

Please publish modules in offcanvas position.