Investec Property Fund Ltd. is participating in the launch of the Izandla Property Fund Pte. Ltd. with the sale of properties worth approximately 580 million South African rand to the new establishment.
The fund is poised to become a minority holder of 35% of Izandla's issued share capital, with the Entrepreneurship Development Trust owning the remaining majority stake of 65%. The majority black-owned management company Izandla Property Pte. Ltd. will be the new fund's external manager.
Izandla's objective is to become a broad-based landlord in South Africa's property landscape, using the experience and network of the fund and Investec Property Pte. Ltd. It also aims to provide clients with a Broad-Based Black Economic Empowerment partner who will own, manage and develop their assets.
In addition, Izandla is in the process of selecting a suitable candidate to take its objectives forward and Investec expects to make an announcement when a decision is made.
Izandla is optimistic that, in comparison to Investec, its majority black ownership will help make certain property transactions possible.
As of June 8, US$1 was equivalent to 12.90 South African rand.