RMH adds heft to Maboneng developers

HEAVYWEIGHT investor RMB Holdings (RMH) has bought a third of Propertuity, the company that developed and manages the hip Maboneng District, offering a vote of confidence in the Johannesburg central business district (CBD).

RMH is aiming to gain exposure to property worth about R15bn in the next few years and may eventually list a separate property fund.

In May, RMH acquired a 25.01% interest in developer Atterbury, which is behind SA’s new mega shopping centre, Mall of Africa.

RMH’s senior investment executive for property, Voyt Krzychylkiewicz, on Monday said the property sector had numerous entrepreneurs, and that his team was looking for those which, with capital, would become large profitable businesses.

Since its creation seven years ago, Propertuity has focused on the redevelopment of dilapidated industrial and office areas in Johannesburg and Durban and owns 70 properties in both cities. Founder Jonathan Liebmann has said he also wants to acquire assets in the Pretoria CBD. Liebmann created the cultural site Arts on Main and expanded it into the Maboneng precinct, Propertuity’s main asset.

“Propertuity represents the first investment into RMH’s specialist portfolio that will focus on niche areas of the property sector,” Krzychylkiewicz said.

“We really like what Jonathan ( Liebmann) and his team have done.

“They were looking for long-term capital and this is what we can provide in exchange for exposure to an expert management team that is a leader in urban renewal,” he said.

He said RMH had chosen to invest in Propertuity as opposed to a listed player in the CBDs of Gauteng because it was chasing net asset value growth and not income. There are cyclical risks for property, including rising interest rates. However, RMH is confident it can do business with developers who create high quality assets.

“Propertuity has expanded from one building valued at R15m to having a portfolio worth over R1bn today. We will assist them,” said RMH CEO Herman Bosman.