Restructuring boosts bank

Posted On Thursday, 01 August 2002 02:00 Published by
Rate this item
(0 votes)
The restructuring sweeping through the Nedcor Group has been good news for Cape of Good Hope Bank, which acquired a R384m commercial and industrial property mortgage book from sister company Nedcor Investment Bank
The restructuring sweeping through the Nedcor Group has been good news for Cape of Good Hope Bank, which acquired a R384m commercial and industrial property mortgage book from sister company Nedcor Investment Bank.

The transaction could put to rest concern that the bank, which has carved a niche in commercial property, might be marginalised by the restructuring.

The acquisition boosted Cape of Good Hope Bank's property advances to R5,5bn.

'It also means we now have another 600 clients with properties in the major metropolitan areas as well as rural areas across the country,' says head of lending at Cape of Good Hope Bank, Peter Smith.

Reporting its results for the six months ended June, Nedcor Investment Bank said the sold book did not fit within its institutional focus.

Smith says: 'Apart from a boost for our asset growth and generating additional income, the acquisition gives us access to a whole new group of clients, most of them small to medium-sized businesses.'

He says funding for the acquisition was sourced by Cape of Good Hope Bank's treasury and investment centres from the bank's client base.

The acquired portfolio is spread across the country, with R115m in urban Gauteng, R79,7m in Eastern Cape, R78,5m in Western Cape metropolitan areas, and R41,3m in KwaZulu-Natal.

Other substantial components of the book involve R17,8m on the Eastern Cape coast, R11,1m in Transkei, R9m in the Western Cape countryside and R6,3m in urban Free State property.

Smith says most of the book is tied up in commercial property, which accounts for R180,8m, while R134,2m accounts for industrial premises.

Other sectors represented are agriculture, which accounts for R9,6m, the hotel and leisure market (R14,1m), and the residential market (R24,2m).

Sapa


Publisher: Sapa
Source: Sapa

Most Popular

Balwin Properties announces R9 billion Munyaka Crystal Lagoon development in Waterfall, Midrand

Feb 06, 2020
Munyaka Crystal Lagoon
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

2020 Commercial Property Themes –Electricity supply and cost will be a key wildcard for the Commercial Property Sector this year

Jan 23, 2020
John LoosFNB
Will electricity supply reliability and cost increases become a key issue again in 2020?

Nedbank’s facilitation of the Barloworld-Khula Sizwe transaction highlights the bank’s commitment to transformation in the commercial property sector

Jan 24, 2020
Nedbank Barloworld Khula Sizwe
Nedbank’s facilitation of the Barloworld-Khula Sizwe transaction highlights the bank’s…

All the insurance you need as a homeowner

Jan 23, 2020
Carl Coetzee CEO of BetterBond
As a new home-owner, you are going to need three types of insurance – at least one of…

The Harri launches in Cape Town's thriving East City Precinct

Jan 23, 2020
The Harri Cape Town
The Harri offers 39 stunning studio and two-storey penthouse apartments, blended with…

Please publish modules in offcanvas position.