Rand Merchant Bank (RMB) has concluded a transaction to introduce a consortium of RMB Properties management, Tiso Group and Royal Bafokeng Holdings (RBH) to a 60% equity interest in its property services business, RMB Properties.

The business will be housed in new entity, the Eris Property Group, and the deal is effective from April 2. RMB will retain a 40% interest in Eris. Management of the property company will acquire 30%, with Tiso and RBH acquiring the remaining 30%. The rand values of the transactions were not disclosed.

RMB deputy CEO Alan Pullinger said the main reasons for the deal were to align the property company to the property empowerment charter, open up more opportunities for it and align management to the business.

The restructuring excludes the ownership of Strategic Real Estate Management, the management company for JSE-listed Emira Property Fund. RMB will provide Eris with funding to ensure business activities continue as in the past.

RMB Properties’ former CEO Warren Schultze, who will continue as CEO of Eris, said the company would have access to a wider client and deal base than previously.

Tiso Group executive chairman Nkululeko Sowazi said the group got involved in the deal because of its compelling commercial proposition.