Sure Kamhunga

Companies Editor

PROPERTY group Multi Spectrum Property (MSP) has concluded an empowerment deal worth R160m with a consortium represented by MSP chairman Pinda Njokweni.

Under the deal, MSP sold 50% of its stake to One Vision Investments, a broad-based black empowerment initiative, with privately owned Scuba Business Trust holding the other stake.

Financial services firm Circin Capital brokered the deal, which MSP said would position it as one of the largest property developers in the region, where it was scouting for new business opportunities. Mvelaphanda Holdings financed the deal.

Circin has roped in Investec as a strategic partner for the initial investment in the deal and also for future funding requirements.

Circin spokesman Piet Nieman said yesterday that One Vision had established a good working relationship with MSP management, which the two partners would leverage to unlock “huge potential" for shareholders through investments in the property sector, including financing the construction of houses, industrial and commercial properties.

One of the projects was a R240m shopping centre in Guguletu, in Western Cape, that would offer 18000m² of retail space. It also expected to launch a R150m industrial park project in The Strand, in Western Cape.

MSP CE Riaan Roos said the group had been acquiring companies that were complementary to its business and had recruited experienced executives in readiness for the expansion to take advantage of opportunities in the property development sector.

“MSP (has) implemented structural and operational changes to deliver integrated property solutions within the residential, commercial and industrial market segments whilst keeping the bottom line in check," Roos said.

Njokweni said MSP was aggressively seeking new opportunities as it wanted to be a market leader. “We have an appetite and are looking at opportunities on a national level as well as beyond our borders."

The group was investigating opportunities in Namibia, Mozambique and Mauritius.

Source: Business Day