R700m deal to empower property fund

Already regarded as one of the listed property sector’s forerunners on the transformation front in SA, Vukile Property has announced another empowerment deal that will see a new black women-owned and -managed property group enter the industry.

Vukile has sold a portfolio of its last remaining non-retail properties to unlisted upstart Mbako Property Fund, as part of a landmark R700 million deal, financially backed by RMB.

Mbako, which is led by AWCA Investment Holdings (AIH) as its founding shareholder, will be managed by a new joint venture between AIH and Vukile.

The sizeable Mbako seed portfolio includes nine office and industrial properties, eight in the country’s commercial hub of Gauteng and one in Pinetown, KwaZulu-Natal. The biggest property is Allandale Industrial in Midrand, stretching over 21 300m2 of gross lettable area on a 12-hectare site with 60 tenants.

Laurence Rapp, Vukile’s CEO, said the “innovative deal” realises Vukile’s strategic vision of a directly-held portfolio comprised exclusively of retail property in South Africa and more significantly, is positive for economic and gender transformation.

“In Mbako’s hands, these assets are a platform for growth and wealth creation,” he said.

Questioned by Moneyweb about the impact of the deal on Vukile’s BEE credentials, Rapp said: “We are currently rated at level three BEE. The deal will certainly be positive for our rating, but it’s more than just what it does for our scorecard. It’s another real commitment by Vukile to transform the sector through the conceptualisation and formation of a black women’s property asset management company.”

Sindi Mabaso-Koyana is executive chairperson of AIH, which was founded and funded in 2008 by black female chartered accountants. It has 54 shareholders and African Women Charted Accountants (AWCA), a 1 500-member non-profit organisation, as a 10% beneficiary.

“AIH is turning its attention to accelerating transformation in the property sector through Mbako Property Fund,” says Mabaso-Koyana.

While AIH has made around 14 investments to date, she tells

Moneyweb the deal with Vukile represents the holding group’s first foray into the commercial property sector.