growthpoint unveils R280m BEE deal
12 December 2006 

Phatsima will purchase 22 million Growthpoint linked units with a market value of R280-million, based on the closing market price of Growthpoint linked units on 8 December 2006 of 12.70 rand.

"As an integral part of the transaction, Phatsima has also acquired a 2.3 percent interest in the Growthpoint asset management contract from Investec Property Group Limited. This element of the transaction entitles Phatsima to 2.3 percent of the asset management fee arising from the asset management agreement in respect of Growthpoint's property portfolio," the group said.

Sam Hackner, chairperson of Growthpoint, said the group was committed to achieving meaningful participation by historically disadvantaged South Africans in the country's economy.

Phatsima is a black controlled and managed property investment holding company, which has been formed for the purpose of these BEE transactions. It is led by Herman Mashaba, founder of Black Like Me products and chairperson of Leswikeng Minerals and Energy and Stocks Building Africa. Herman is also an independent non-executive director of Edcon Limited.

Mashaba, who holds an indirect beneficial interest in Phatsima of 40 percent through the Herman and Connie Mashaba Trust, is a non-executive director of Growthpoint and will continue to represent Phatsima in this position.

Norbert Sasse, CEO of Growthpoint Properties Limited, said that the implementation of both BEE transactions were major steps towards ensuring that Growthpoint's BEE equity ownership and control responsibilities are addressed.

"These transactions have introduced BEE partners which are influential role players and who will add value to Growthpoint and its linked unitholders while, at the same time, benefiting historically disadvantaged South Africans," notes Sasse.

Phatsima will acquire the 22 million new Growthpoint linked units, which will be issued at 11.50 rand per linked unit as part of a renounceable vendor placing, in terms of the agreements concluded between Growthpoint and the vendors of the Business Connexion property portfolio acquired by Growthpoint.

"We have procured third-party funding for our BEE partners from Old Mutual Specialised Finance and Investec Private Bank for R215.8-million with Growthpoint stepping in as mezzanine debt provider for the balance of the total funding required being R57.4-million," say Sasse.

These transactions, combined with Growthpoint's R1-billion BEE transaction concluded in August 2005, brings the total Growthpoint linked units in issue owned by BEE entities to 122 million or 12.6 percent of Growthpoint's total shares in issue.

Tiisetso Motsoeneng , I-Net Bridge, 12 December 2006,  business.iafrica.com