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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.

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LINK : https://eprop.co.za/commercial-property-news/item/21956-nedbank-s-facilitation-of-the-barloworld-khula-sizwe-transaction-highlights-the-bank-s-commitment-to-transformation-in-the-commercial-property-sector

Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER

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