CBS and Zwelakhe Sisulu announce formation of African Capital Property Portfolio

Leading JSE-listed property loan stock investment and holding company CBS Property Portfolio today announced their involvement in a new property initiative, African Capital Property Portfolio Limited, which aims to establish the largest black-owned and managed unlisted commercial property portfolio in South Africa.

The controlling shareholder of African Capital is a consortium led by businessman Zwelakhe Sisulu, and includes black professionals and broad-based women’s groups from Gauteng, KwaZulu-Natal and the Western Cape.

“This is a watershed deal which will undoubtedly have a huge impact on the property business in this country. We are extremely excited at the partnership. It will have a strong focus on skills development and the growth of young professionals,” says African Capital Chairman Sisulu.

“The company has been founded on sustainable, commercial principles and is set to inspire a new generation of transformation transactions,” notes Sisulu who also has business interests in the media and telecoms, and mineral and energy sectors.

African Capital will be owned 51% by Abelusi, the consortium led by Sisulu, 45% by CBS and 4% by the Menziwa Trust. CBS have also granted an option to the Public Investment Corporation (PIC), the asset manager for the Government Pension Fund, to acquire a 30% stake in the company, which will assist in the funding of future growth. PIC has a close relationship with CBS, and was instrumental in the formation of this new venture. 

African Capital intends to initially acquire a portfolio of properties from CBS who will furthermore be involved in enterprise development and will provide technical and administrative support as well as skills transfer to African Capital’s asset and property managers.

CBS owns and manages a national portfolio of 48 properties valued at R2 billion, and is led by some of the sector’s most experienced and dynamic property professionals.

CBS describes this deal as a meeting of minds. “African Capital Property Portfolio represents sincere, sustainable transformation underpinned by solid  property assets and supported by  valuable skills and knowledge. African Capital will make a major contribution to elevating enterprise and skills development in the property industry,” says Gary Fisher, CBS director and representative on the African Capital board.

“We have great confidence in the future of this dynamic new company, and are delighted with our new partners, who share our economic and social development objectives” says Fisher.

African Capital is structured as an unlisted property loan stock. Asset management will be provided by African Capital Asset Manager in which Abelusi holds a 51% interest and CBS the remainder. Property management will be delegated to a wholly owned subsidiary of African Capital.

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