EMPOWERMENT icon Tokyo Sexwale's is best known in Cape property circles for the residential development near the old Silvermine naval base. But now Sexwale – through his Mvelaphanda Holdings – has taken a huge chunk of local property group, Paramount.
Paramount holds an array of retail, commercial and industrial properties – mostly based in Cape Town. It is the second major Cape property company to secure an empowerment deal after Spearhead.
Mvela, which also owns a share of the Broll property Group, will pay R520m to acquire 80m convertible preference shares in Paramount.
Paramount MD Rodney Squires-Howe said the board believed the implementation of the proposed BEE transaction are major steps towards fulfilling Paramount's BEE ownership responsibilities in terms of the Property Sector Transformation Charter.
He said Mvela's participation represented an important milestone in Paramount's ongoing development. Paramount's main properties include the Golden Acre in central Cape Town, the Pick 'n Pay HQ in Claremont and Paramount Place near Cavendish Square.
Property sources believe that Sexwale's presence at Paramount could increase deal flow in terms of bringing new properties into the portfolio. Paramount's portfolio has grown dramatically to over R2bn by the end of 2005 after an acquisition spree of over R800m.
The possibility of Paramount driving further consolidation amongst listed property counters also increased with Sexwale's empowerment credentials likely to open many boardroom doors.
