JSE-listed real estate investment trust (Reit) Equites Property Fund has completed a transaction with investor consortium Mabel Black Knight Investments, which saw the transfer of properties on Thursday.
Concluded in terms of Statement 102 of the Codes of Good Practice on Broad-Based Black Economic Empowerment (B-BBEE), the deal sees the disposal of six warehouses in Cape Town with a purchase price of R190 million.
In a statement issued on Thursday, the logistics property fund indicated that Equites will, as part of the transaction, provide training, facilitate the skills transfer process to Mabel, and ensure a smooth transition for the tenants of each property.
“In addition, Equites will provide ongoing mentorship and guidance to Mabel to allow them to further develop and enhance their property expertise,” it adds.
Equites says the transaction shows its support of B-BBEE and transformation in South Africa.
“The Codes emphasise the need to achieve sustainable and meaningful transformation and encourages participation of previously disadvantaged groups.
“Furthermore, Equites believes that true transformation lies in the development of black businesses, especially in sectors which may have historically been under-represented, through mentorship, support and the transfer of skills.”
Equites CEO Andrea Taverna-Turisan says the transaction supports equitable wealth distribution and advances the development of black businesses.
“I hope for nothing more than to see enormous success for the Mabel Group, and Equites will be there to offer its support throughout their journey.”
Mabel co-founder Ismael Ebrahim says the company is delighted to have finalised the transaction with Equites.
“While it is a landmark moment for our young company it also reflects well on the market-leading Reit, once again showing their full commitment towards meaningfully transforming participation in the South African economy and the ethos of Ubuntu.”
Ebrahim says Equites has created a space for the cultivation of young talent and further encourages the team’s thoughts and ideas.
“We are excited to be partnering with an organisation with these values.” he adds.
Listen to Fifi Peters’s interview with Equites CFO Laila Razack (or read the transcript here):
Nondumiso Lehutso is a Moneyweb intern.