This landmark transaction enabled investors to own a stake in a R3 billion commercial property portfolio through a public offering concluded in May 2019, with shares allocated exclusively to qualifying broad-based black economic empowerment (BBBEE) investors.
The empowerment transaction – one of the largest involving commercial property concluded in South Africa – was a sale and leaseback under which Barloworld is the tenant of the properties, with the lease also securing cashflow for the investors. The transaction was also expected to create a number of benefits for Barloworld:
- Unlocking over R2 billion cash from its balance sheet.
- Being able to claim almost 14% black ownership in terms of the BEE codes.
- Satisfying the black ownership element of its BBBEE scorecard over the long term with the Khula Sizwe transaction and through the Barloworld Empowerment Foundation.
- Increasing its brand equity with customers and stakeholders.
