A PUBLIC-private partnership agreement to design, build, finance and operate a new R500m head office campus of the trade and industry department (DTI) in Pretoria has been signed between the DTI, finance department, the City of Tshwane and an empowerment consortium, Rainprop.
Standard Corporate and Merchant Bank (SCMB) advised, arranged and underwrote finance for the project, the group said yesterday.
The DTI awarded a 25-year master concession to Rainprop to operate the head office campus in Nelson Mandela Drive.
The funding package was structured on a nonrecourse basis, and incorporated both senior terms loans and mezzanine finance.
An innovative funding structure was put in place to support the investment in Rainprop by the empowerment shareholders. The DTI will make monthly payments to Rainprop.
In terms of the concession agreement, which will cover costs of providing the facilities management service and servicing the capital raised.
The majority shareholding (55%) in Rainprop consists of companies controlled by black shareholders. These shareholders include Rainbow Construction, Prop 5 Corporation, Zwelinzima Holdings, the Women's Development Bank Holdings and The Association for People with Disabilities.
The other shareholders are Rebserve Facilities Management, Propnet, WBHO Construction, Atterbury Property Holdings and Parkdev SA.
Publisher: Business Day
Source: Business Day
