Sanlam Properties - a division of insurance giant Sanlam - has established Khulela Properties as its primary black economic empowerment property vehicle and empowerment partner.
 
Khulela has been set up to provide specific property asset management services not only to Sanlam Properties, but also to the broader property market, Sanlam Properties said.
 
The Simeka Group of companies will own 51% of Khulela and Sanlam Properties will hold the balance of 49%. Robinson Ramaite, a shareholder in Simeka Investment Holdings, has been appointed as Khulela's managing director.
 
Ramaite is also the non-executive chairman of Vusani Property Holdings - a BEE property holding company that will have a close association with Khulela.
 
The establishment of Khulela is in accordance with Sanlam's recent announcement regarding the introduction of BEE shareholders into Vukile Property Fund through Clidet 598 - a vehicle that owns 25% of Vukile.
 
At that announcement, Sanlam Properties, which facilitated the Vukile deal, emphasised that an additional empowerment partner (Khulela) had already been identified as being able to add operational value to both Vukile and Sanlam Properties, would ultimately hold 12% of Clidet.
 
Sanlam Properties' empowerment strategy has resulted in the implementation of a number of BEE transactions such as the empowerment of Vukile, the establishment of Vusani and the formation of Khulela, Sanlam said.
 
"As our empowerment strategy evolved we identified the need to attract proactive partners with significant operational capabilities that could enhance our current and future property portfolios.
 
"Khulela will provide its clients with property services including property investment, development, debt and equity raising, listings and unitisation projects and project tendering. To demonstrate our support for Khulela, Sanlam Properties will facilitate skills transfer, by seconding 5 of its senior employees to Khulela and to assist Khulela with deal flow," commented Sanlam Properties MD Banus van der Walt.
 
Ramaite added that Khulela had been formed for the express purpose of allowing Black People and Black Entities to become participants in the property industry in partnership with one of South Africa's largest property institutions.
 
Khulela has access to skilled, qualified and experienced property professionals and will identify, advise on, structure and implement property transactions in terms of its mandated obligations to Sanlam Properties.
 
" Khulela aims to leverage its unique position in order to play a full role in the promotion of BEE by bringing our property experience and skills to bear at both an operational and strategic level. Through the various BEE projects

Sanlam Properties has implemented it is clear that Sanlam recognises the importance of BEE and the benefits a sustainable empowerment strategy can deliver. Khulela is a key component to this strategy and it is important that we ensure its success," he said.

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