In one of the most significant black empowerment deals in the commercial and retail property sector, Sanlam Properties and a consortium consisting of the Sifikile Group, Simeka Properties and management have established, Vusani Property Investments (Vusani), with assets valued at R500 million.
Vusani is a fully-fledged BEE company with 70% being black owned and controlled. Sanlam Properties will hold a 30% stake and will actively participate in driving Vusani’s vision and growth in the future.
The empowerment transaction, facilitated by Sanlam Properties, one of South Africa’s premier property companies, and funded by Nedbank Corporate Property Finance, places Vusani, as a serious contender in the commercial property sector ahead of the transformational property charter.
Equity funding was facilitated by Sanlam Life. Nedbank Corporate Property Finance provided senior debt demonstrating their commitment to the transformation of the property sector and their confidence in the empowerment partners.
The empowerment consortium consisting of Sifikile Group, Simeka Properties as well as management, have an established relationship through Sifikile Group’s shareholding in South Point Holdings. Together they own a fixed property portfolio of nine buildings in the Braamfontein Precinct providing affordable, professionally managed and secure student and residential accommodation as well as commercial and retail space.
Vusani’s empowerment and asset management credentials, have already delivered results, reflecting an increase in the value of this new property portfolio by more than 20% over and above the purchase price.
Vusani is well poised to take advantage of the opportunities that will emerge from the property charter and have already met the ideals of the charter which extend beyond equity holdings by black entrepreneurs by encouraging direct involvement in the management and operation of a property owning entity.
The company’s management team brings a wealth of experience as turnaround strategists in the property industry. Together with the management team’s unique hands-on approach to asset management coupled with their extensive property experience and strong business and public sector networks, Vusani is well positioned to recognise and realise opportunities.
Vusani Group Board members are:
- Mr Robinson Ramaite, Non-executive Chairman - Mervyn H Serebro, Chief Executive Officer - Tshilidzi Ratshitanga, Director: Business Strategy and Development - Adrian Chiger, Director: Operations - Mrs HC (Ina) Lopion, Director: representing Sanlam Properties
Vusani’s extensive property portfolio consists of 23 nationally based commercial and retail properties with substantial growth opportunities.
Commenting on Vusani, Banus van der Walt, Managing Director of Sanlam Properties said:
“Sanlam Properties identified the opportunity for the creation of a BEE property company in partnership with a credible consortium consisting of the Sifikile Group, Simeka Properties and management who have rich property experience and established business and public sector networks.
“The establishment of Vusani complies with Sanlam Properties’ key criteria for black economic empowerment – that of ownership and control, the appropriate skills capacity for delivery and the establishment of a meaningful business.”
Robinson Ramaite, Non-executive Chairman of Vusani said:
“Vusani means “awakening” in Venda. Given the excellent progress made in the area of BEE through the facilitation of new opportunities for black participation in the South African economy and the introduction of the BEE codes and relevant charters, we believe that Vusani will awaken the opportunities that exist for a truly black empowered company to achieve success in a transformed property sector.”
Mervyn Serebro, Chief Executive Officer of Vusani added:
“There are significant growth opportunities within the property market and as a fully-fledged empowerment company, I am confident that Vusani is well positioned to take advantage of these. Already, we have increased the value of this new portfolio by over 20%.
“The size of our national portfolio of properties consists of 150,000 m² of leasable space with growth potential from reductions of vacancies, re-tenanting and repositioning various buildings to better cater for tenants and consumer needs and expectations.
“We have a committed and passionate team of experienced people who have been in the industry for a number of years. Their unique skills as turnaround strategists and their hands-on approach in the direct control and management of Vusani’s assets, sets us on a path to lead the way in the property industry.”
Ken Reynolds, divisional director of Nedbank Corporate Property Finance in Gauteng commented on the deal:
“We are delighted to have provided the funding for this significant BEE property deal. It demonstrates our commitment to playing a key role in transformation in the property sector. Transformation means a complete change or paradigm shift, and that is our aim. In order for us to remain competitive and relevant in a changing business environment, we must continue to chart a course that takes us to a place beyond transformation.”
