Nedbank’s facilitation of the Barloworld-Khula Sizwe transaction highlights the bank’s commitment to
EPROPERTYNEWS / 24 JANUARY 2019 - 14.43 / STAFF REPORTER
Nedbank’s facilitation of the Barloworld-Khula Sizwe transaction highlights the bank’s commitment to transformation in the commercial property sector.
This landmark transaction enabled investors to own a stake in a R3 billion commercial property portfolio through a public offering concluded in May 2019, with shares allocated exclusively to qualifying broad-based black economic empowerment (BBBEE) investors.
The empowerment transaction – one of the largest involving commercial property concluded in South Africa – was a sale and leaseback under which Barloworld is the tenant of the properties, with the lease also securing cashflow for the investors. The transaction was also expected to create a number of benefits for Barloworld:
Unlocking over R2 billion cash from its balance sheet.
Being able to claim almost 14% black ownership in terms of the BEE codes.
Satisfying the black ownership element of its BBBEE scorecard over the long term with the Khula Sizwe transaction and through the Barloworld Empowerment Foundation.
Increasing its brand equity with customers and stakeholders.
------
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER