Spearhead leads listed property sector with 25% em
Spearhead leads listed property sector with 25% empowerment sell-off
Nick Wilson
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Property Correspondent
SPEARHEAD Property Holdings said yesterday it had negotiated deals which would result in 25% of its shareholding being in black hands.
Spearhead CE Mike Flax said the transactions would make the company one of the most empowered in the South African listed property sector.
He said the deals would be financed independently by the group’s empowerment partners.
The first of these is Ngatana, a broad-based empowerment group with a focus on property and a large number of shareholders from previously disadvantaged communities. It has bought a 13% interest in Spearhead, valued at R68m.
The second is Abu Varachhia, CE of quantity surveyors Letchmiah, Daya and Varachhia, who has bought a 4% interest, which is valued at R20m.
The third empowerment shareholder is the Public Investment Commissioners (PIC), which has acquired a 5% interest in Spearhead with a value of R25m.
Angelique de Rauville, MD of listed property portfolio management company Provest, said there were a number of transactions in the pipeline relating to other listed property companies and funds.
She said the Spearhead transaction followed a similar achievement by Capital Property Fund.
In July last year, Cyril Ramaphosa’s Shanduka Properties acquired 5% of Capital.
De Rauville said there was a “window of opportunity” for Spearhead and Capital with their black economic empowerment shareholdings, given the other empowerment deals that were expected to take place.
“By the time the property charter is implemented by the middle of this year, we expect to have seen similar black economic empowerment transactions having been facilitated into Spearhead peers in the listed property sector,” she said.
“I think Spearhead is setting a good precedent for what needs to be achieved.”
De Rauville said Provest was expecting the property charter to stipulate that listed property companies each have at least a 25% black economic empowerment shareholding
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