Royal Bafokeng Holdings (RBH) said on Monday that it has acquired a 10.5% interest in Atterbury Investment Holdings (AIH) for R500 million cash.

An unlisted capital growth property fund, AIH invests in commercial and retail assets in business hubs in major South African metropolitan areas.

"This investment in one of South Africa's top commercial property funds dovetails with our long-term diversification strategy," said RBH CEO Niall Carroll.

Besides directly held properties, AIH also has a portfolio of investments held indirectly through other property funds. AIH's gross asset base has grown to more than R7 billion from R600 million at its founding in July 2005.

Future anticipated growth is supported by AIH's strategic relationship with Atterbury Property Holdings, which provides human capital in its asset management and property development functions.

RBH is responsible for the management and development of the commercial assets of the Royal Bafokeng Nation (RBN), with the overall business objective of maximising returns to enable the RBN to deliver sustainable benefits to the community.

The RBN, as the sole shareholder of RBH, is a 300 000-strong community based largely in North West Province.