In a major black economic empowerment (BEE) deal in the commercial and retail property sector, Sanlam Properties and a consortium consisting of the Sifikile Group, Simeka Properties and management have announced the launch of Vusani Property Investments. Vusani has assets valued at 500 million rand.
Vusani, which means "awakening" in Venda, is 70% black owned and controlled, with Sanlam Properties holding a 30% stake. Sanlam Properties will also actively participate in driving Vusani's vision and growth in the future.
The transaction, facilitated by Sanlam Properties and funded by Nedbank Corporate Property Finance, places Vusani as a serious contender in the commercial property sector ahead of the transformational property charter, the companies said in a statement.
Equity funding was facilitated by Sanlam Life and Nedbank Corporate Property Finance provided senior debt.
The empowerment consortium has an established relationship through Sifikile Group's shareholding in South Point Holdings. Together they own a fixed property portfolio of nine buildings in the Braamfontein Precinct providing student and residential accommodation as well as commercial and retail space.
Vusani Group Board members are: Robinson Ramaite, Non-executive Chairman; Mervyn H Serebro, CEO; Tshilidzi Ratshitanga, Director: Business Strategy and Development; Adrian Chiger, Director: Operations and Ina Lopion, Director: representing Sanlam Properties.
Vusani's property portfolio consists of 23 nationally based commercial and retail properties with substantial growth opportunities.
"There are significant growth opportunities within the property market and as a fully fledged empowerment company, I am confident that Vusani is well positioned to take advantage of these. Already, we have increased the value of this new portfolio by over 20%. The size of our national portfolio of properties consists of 150,000 m² of leasable space with growth potential from reductions of vacancies, re-tenanting and repositioning various buildings to better cater for tenants and consumer needs and expectations," said Serebro.
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
