Matemeku 104, the black-owned company founded by businessman Moss Mashishi, has acquired the 28% stake in Calulo Investments previously held by RMB Bank, in a R48 million deal aimed at opening the doors for future government property contracts.

Calulo Property Fund chief operating officer Nyameka Madikizela said yesterday that Mashishi brought a vast contact network to the table that broadened the existing relationship with government to "enable Calulo to talk to government leaders".

The medium-term goal was for Calulo to become "the black economic empowerment landlord of choice" by entering into partnerships whereby government rented space within Calulo portfolio buildings. This followed an announcement last year that Calulo was talking to government with the view to acquiring several of its properties on the market. The company is in a strong negotiating position as one of the most empowered listed property companies in a sector dominated by white-owned businesses.

Calulo Property Fund holds a 22,8% stake in the listed fund Calulo, a 50,1% stake in the fund's asset managers and 60% in its property managers. There is no other property fund on the JSE with all three empowerment credentials.

Calulo has a R380 million portfolio and is negotiating deals that will take it past the R500 million mark. On Friday, management reiterated its intention to have a R2 billion portfolio under its control by December next year.

In the past six months, Mashishi has concluded several high-profile transactions, including being part of the consortium that acquired a stake in De Beers Consolidated Mines. Matemeku has also bought into Glenrand MIB and three years ago landed a deal with Sol Kerzner's One&Only Hotel Group to build an exclusive property in Cape Town. Mashishi heads the South African Sports Confederation and Olympic Committee. He is former Tourism SA CEO and was recently appointed nonexecutive chairman of advertising house Ogilvy SA.

Madikizela said Matemeku and Calulo Property Fund held similar views on the company's future but retained the right to different opinions. Hence, there would be no voting agreement between the two empowerment unitholders.

The transaction pushed the Calulo empowerment component beyond 50% weeks before the government released the draft property charter to coerce the industry to commit to a 25% empowerment ownership.

Madikizela said the enhanced empowerment status would provide building blocks essential to ensure Calulo met its initial growth aspirations, while providing a sustainable platform from which to access the listed property sector.

Management would continue growing the portfolio towards the R2 billion milestone while at least maintaining the empowerment status in line with the draft recommendations. Opportunities would also be considered for acquiring other listed property entities.