Investec Property fund sells portfolio to Izandla

Investec Property Fund (IPF) has sold a seed portfolio to Izandla Property, its broad-based black empowerment partner, for R586.9m. The portfolio of 17 properties represents an initial property yield of 10.4% on a fully let basis. The disposal consideration would be settled partly in cash and partly through the provision of the requisite funding to Izandla by IPF and the Entrepreneurship Development Trust. Izandla is majority owned by EDT, a broad-based charitable trust, which has 65% shareholding, while IPF owns the remaining 35%. Izandla board member Sthembile Nkabinde said she wanted the company to grow to be a separately listed entity that could compete in the property sector within a few years. The seed portfolio comprised properties with an average value per property of R35m. The portfolio weighted average lease expiry (Wale) was 3.4 years with an average escalation of 7.8% per annum. Nkabinde said the portfolio would benefit from both a strong quality of earnings and potentia...

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