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ApexHi Properties Limited has concluded a joint venture with black owned and managed Isivuno Apex Properties (IAP), which will administer and manage a R400-million portfolio of commercial properties in Pretoria.

With its background in dealing with the public sector tenants and its hands-on property management skills, IAP focuses on adding value to commercial properties, especially those that are fully or partially occupied by public sector tenants.

ApexHi director David Rice says in addition to strengthening its offering from a property management perspective with IAP working together with Broll, ApexHi’s Property management outsourcee, the deal is part of ApexHi’s promotion of enterprise development in the property sector. “The Pretoria inner city portfolio comprises predominantly government tenants, which have specialised property requirements. IAP’s in-depth understanding of these requirements prompted ApexHi to enter into a partnership with the company,” says Rice. IAP will initially manage eight properties covering 142 000m² in the area, including Poyntons, Zanza, Batho Pele House, Delpen, Shoreburg, Opera Plaza, Fedsure Forum and Embassy House buildings.

Rice says it is intended that the properties be sold and transferred to a joint venture with ApexHi and Isivuno as equal partners, an initiative that is expected to grow with the purchase of additional buildings. IAP director Dumisani Nene says the ApexHi and IAP marriage is about bringing together assets and skills that will benefit both businesses. “IAP brings systems knowledge to the mix and added value in terms of understanding how government operates and what its property needs are,” he says.

The deal demonstrates ApexHi’s commitment to the Property Sector Transformation Charter, which highlights the need to support, facilitate and foster new and existing empowerment enterprises. The joint venture initiative follows closely on the heels of ApexHi’s announcement of a proposed BEE transaction, which will see Clearwater Capital and a broad based BEE ownership scheme secure 10% of the voting rights in ApexHi, if current unit holders vote in favour of the proposed new C unit.

ApexHi CEO Gerald Leissner says the company is approaching transformation on a number of levels. “While the proposed C-unit brings about transformation at an ownership level, and ensures that a broad base benefits from the success of the company, the deal with Isivuno promotes enterprise development in the sector. “What is important is that both ApexHi and IAP benefit from the transaction – ApexHi benefits from IAPs insight into this specialised field, and Isivuno gains from its association with the second largest listed property company in the country,” says Leissner.