Listed property loan stock company Pangbourne Properties says it has concluded a R125m empowerment deal.

CEO Craig Hutchison said earlier this week empowerment investment company Yard Capital had bought a 6,15% interest in Pangbourne and that the transaction was a "first step" in Pangbourne's black economic empowerment programme.

"As the property (empowerment) charter requirements come into place, we will look to match the targets that have been put in place," Hutchison said.

He said the transaction followed an 18-month process and that Yard Capital, incorporated in September 2002, had helped Pangbourne acquire property portfolios.

Hutchison said Yard Capital would play an essential role in Pangbourne's empowerment programme in the future.

Pangbourne had ensured the deal was "not dilutionary to future earnings". It recently bought a property portfolio from listed property loan stock Paramount for R125m.

Hutchison said Pangbourne would issue new units to raise capital to pay for the portfolio and Yard Capital would buy the units.

"We've provided security by bonding some of our properties, and that is security so they can raise funds to pay for the new issue of units," he said.

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge