Steve Brookes, CEO of Balwin Properties, commented:

“I’ve been working on a suitable empowerment transaction since listing and Balwin is delighted with the shareholder support received to implement the transaction. Transformation has always been very close to Balwin.”

In terms of the transaction, a Special Purpose Vehicle owned by black shareholders (the BEE SPV) will subscribe for 47 219 260 newly issued Balwin shares. The total subscription price will be 455 cents less a 20% discount.

“In addition to the phenomenal work done by the Balwin Foundation, the operational side of Balwin has made considerable efforts in transforming our business over the past number of years in support of the principles and objectives of the Black Economic Empowerment Act. This transaction will further improve our BEE scorecard rating,” added Brookes.

The BEE SPV will be controlled by Mr Aobakwe Reginald Koketso Kukama, who will hold 51% of the shares in the BEE SPV. A black female will hold 24% and black youth will hold the remaining 25%.

The BEE SPV owners will pay R20 million of their own capital towards purchasing the newly issued shares, with the balance to be repaid from the proceeds of dividends and own contribution cash top-ups over the next ten years. There is also a lock-in clause of 10 years during which the shareholding may not be disposed of or encumbered.

Mr Kukama obtained a Bachelor of Architectural Studies (BAS) and Bachelor of Architecture (Hons.) Cum Laude, from the University of Cape Town. He also holds an MSc in Urban Design in Development from the University of London. After completion of his Masters’ degree in London, he returned to South Africa, and was offered a position of Associate Director and Head of Urban Design at Stauch Vorster Architects in Cape Town. During that period, he became an exchange employee to a leading retail architectural firm in Baltimore, Development Design Group, whom at that time were designing Cavendish Square for Old Mutual Properties.

Mr Kukama founded Yaetsho Investments & Projects specializing, inter alia, in Project Management, Property Asset Management and Renewable Energy. He has vast experience in the property sector with specific focus on project management. Balwin believes that Mr Kukama will be a value adding partner who possesses the functional and technical expertise to complement the existing board’s skillset.

“I look forward to working with Mr Kukama. We are committed to creating a business that is truly diverse, representative, and transformed and we firmly believe that this transaction will assist us in achieving our goals,” concludes Brookes.