Own a share of R2.9bn in property with the Barloworld Khula Sizwe B-BBEE share scheme
The innovative share scheme is now open for applications
As a company committed to positively affecting its customers, business, people and communities, Barloworld has created the Barloworld Khula Sizwe B-BBEE share scheme to support the national development imperatives of advancing inclusive economic transformation and growth in SA.
The recently launched B-BBEE share scheme, a 15-year empowerment scheme with five years as a minimum investment period, offers shareholders the opportunity to own their share of R2.9bn in commercial property, making it an innovative first in the B-BBEE share scheme landscape.
The majority of Barloworld’s portfolio of commercial properties will be sold to a newly created black-owned property company, Khula Sizwe Property Holdings, through a combination of debt, loans and equity, at a 5% discount. Barloworld will enter into a 10-year triple net lease with the property company, with a built-in annual increase of 8%, which will pay for the scheme’s operating costs and taxes while reducing the debt as quickly as possible. This will help increase the share value and provide predictable cash flows.
The black South African public, alongside Barloworld employees and management (through separate trusts), will own shares in Khula Sizwe Property Holdings.
Applications are open until May 31 2019 and can be completed via the online portal at www.barloworldkhulasizwe.com.
Assistance in the application process is available via the call centre, on 0800 233 733, and at dedicated walk-in centres, which are listed on the website.
Five fast facts about the scheme:
- Barloworld Khula Sizwe is a property-based B-BBEE share scheme
- Minimum investment: R2,500 at R10 per share, a 20% discount (full price at R12.41 per share)
- Shares available: 16.34m
- Minimum investment period: five years
- Application period: April 10 to May 31 2019
Visit the Barloworld Khula Sizwe website for more information.
This article was paid for by Barloworld Khula Sizwe.