The business will be housed in a new entity, the Eris Property Group (“Eris”), and the transaction is effective from 2 April 2008. RMB will retain a 40% interest in Eris making it the largest shareholder in the new entity.   RMBP management will acquire a 30% interest, with Tiso and RBH acquiring the remaining 30%.

The restructure will exclude the ownership of Strategic Real Estate Management (Pty) Ltd, which is the management company for the JSE listed Emira Property Fund.

The transaction was approved by the Competition Commission on 14 May 2008.

As part of the transaction, RMB will provide funding to Eris in order to ensure that the business activities continue as in the past.

RMB says that the transaction positions Eris as a substantial independent and empowered property services company, which also aligns management and shareholders more effectively.
 
Former CEO of RMBP, Warren Schultze, who continues as CEO of Eris, says that “Eris will continue with the business activities previously undertaken by RMBP, but believes that the company will have access to a wider client and deal base than previously.”

He adds that “the ongoing investment by RMB reflects its confidence in Eris’ future.  The support previously provided by RMB in new business initiatives and through the provision of funding was invaluable.”

In addition, Tiso and RBH have investment aspirations in the property sector, and further opportunities for Eris are also likely to arise as a result of their wider business activities.
 
Tiso Group executive chairman Nkululeko Sowazi says that the group got involved in the transaction because of its compelling commercial proposition.  “It is in line with the Tiso strategic approach of deepening our exposure to the property sector.  In addition to the quality business we are acquiring, we are also cementing a strategic partnership with one of the most highly talented management teams in the sector.” 

Niall Carroll, CEO of RBH says that in the medium term “property will form a significant part of the RBH investment portfolio”.  Carroll added that “RBH has found in Eris the right partner to build a mutually beneficial platform for property investments.”