Today, 01 November 2004, sees the implementation of the Gensec Property Services transaction, after the fulfilment of all conditions precedent including getting the go ahead of the Competition Commission.

CEO of Gensec, Marna van der Walt, comments, “We are very pleased that the transaction is now complete and look forward to achieving our vision for Gensec.  The diversified property portfolio in excess of R12-R13 billion which we manage, positions Gensec firmly as one of the leading independent, property management companies in South Africa.  Our nationwide spread of properties, managed for multiple clients, including institutions, listed and private property companies, provides us with a strong platform from which to aggressively grow our business.”

The transaction involved former single shareholder, Sanlam, reducing its stake to 35%, paving the way for new shareholders, senior management (25%), the Pam Golding Property Group (20%) and black economic empowerment partner, the Sam Montsi Consortium (20%) to acquire shares.  In the short to medium term, it is the intention of Sanlam to earmark an additional 10% for further black economic empowerment.

Sam Montsi, non-Executive Director, comments, “We see a crucial need for greater involvement in the commercial property sector by black South Africans, and believe that our taking an active role in the future success of Gensec will encourage others to do the same.  At the same time, we are confident that we will be able to assist Gensec to sell its world class services to the multi-billion Rand property portfolio of Government, ensuring the preservation and enhancement of the value of state assets.”

The Pam Golding leg of the transaction sees R2 billion of properties under management moving to Gensec and provides Gensec with immediate and strong international linkages.  In addition, the acknowledged brand building and marketing expertise of the Pam Golding organisation will be highly beneficial to the Gensec team.

“The deal is an exciting one for the Pam Golding Group as it strengthens further our position as the leading property brand in South Africa.  We look forward to the opportunity of working with the highly energetic and motivated Gensec team,” comments Peter Golding.

Nick Christodoulou, CEO of Sanlam Independent Financial Services, remains on the board as chairman until the end of this financial year, ending 31 December 2004. He is joined by new non-executive directors, Sam Montsi Chairman of Montsi Investments, Hilda Ndude MD of Dyambu Holdings (Pty) Ltd, David Reid MD of David Reid Property Services, Peter Golding Chief Executive – Golding Commercial Properties and Sumaya Parker Senior Analyst of Sanlam Independent Financial Services. Rassie van Niekerk Executive Director – Gensec Property Services Ltd joins CEO, Marna van der Walt of Gensec Property Services Ltd, as the second executive director on the board.

Ends

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Written and distributed by Arcay Corporate Communications (Pty) Ltd for Gensec.

For further information, contact:

Andre Venter at Arcay on (011) 480 8529

For immediate comment, contact:

Marna van der Walt at Gensec on (011) 471 7530 or 083 457 7541