New property help for entrepreneurs
SPECIALIST risk finance company Business Partners yesterday launched two specialised small and medium enterprise (SME) Funds in a bid to help growing entrepreneurs to grow their equity base in the property sector.
Speaking at the launch in Johannesburg, Business Partners MD Nazeem Martin said the local commercial property market continued to offer value for potential investors, and in particular, entrepreneurs.
“We believe that commercial and industrial property remains an attractive investment for entrepreneurs, either as a sound longterm investment or to secure tenure for their own business operations.”
The Business Partners Property Fund makes R200-million available to provide affordable finance for SMEs across all industries, allowing business owners to purchase and/or refinance their own business premises. No deposit is required for this type of funding which will offer 100% financing to qualifying businesses.
“The Property Fund will cater to entrepreneurs with viable operating businesses, in existence for over three years, who wish to purchase their own premises but who have limited capital or security to contribute, or who do not want to compromise their business’ cash resources for the deposit.”
Martin said by purchasing business premises, business owners could save up to 50% on premises costs over a 10-year period, without compromising the business’ cash resources.
The R250-million Business Partners Joint Venture Property Fund will provide equity or term finance, or a combination of both, for the purchase of a multi-tenanted commercial, industrial or retail property valued between R2-million and R120-million.
Property investments in risk adjusted good locations– those offering good growth and/or return on investment will be considered for this fund. The fund will also consider a viable property investment that has been over-geared and requires a restructuring of the existing debt, converting from a debt to equity finance model.
“With the launch of these new funds, we seek to achieve a greater developmental impact in the local SME sector. This is to ensure that local entrepreneurs are able to play their rightful role of generating wealth, growing the economy and creating jobs,” said Martin. — DDR