New joint venture announced.

Posted On Wednesday, 20 November 2002 02:00 Published by
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CYRIL Ramaphosa’s Millenium Consolidated Investments ('MCI') and Majo Property Development (Proprietary) Limited ('Majo') which is a youth-driven empowerment company represented by Lunga Ncwana have announced that they have entered into a joint venture with Investec Bank and Rabcav...
CYRIL Ramaphosa’s Millenium Consolidated Investments ('MCI') and Majo Property Development (Proprietary) Limited ('Majo') which is a youth-driven empowerment company represented by Lunga Ncwana have announced that they have entered into a joint venture with Investec Bank and Rabcav, a property development group comprising of Rabie Property Projects ('Rabie') and the Cavcor Property Group ('Cavcor') in respect of a portion of the Big Bay Project, a public private partnership along the shores of Bloubergstrand in Cape Town, the full details of which will be announced in due course.

The joint venture partners said that future property development opportunities will be identified on a case by case basis and evaluated on their merits and pursued only if socio-economic benefits and financial returns justify the risk. Whilst this will be the first foray into the property sector for MCI and Majo, Rabie and Cavcor have a track record extending over 25 years in the property industry in the Western Cape and Investec Bank is an established and experienced financier of property developments.

Rabcav was the lead developer of Westlake which lies along the prestigious development of Steenberg Golf Estate, formerly owned by Johnnic, in the Constantia Valley. This 100ha site owned by the government was previously occupied by an informal settlement community of 700 families living in squalor.

At the Westlake site, Mr Ramaphosa witnessed how Rabie and Cavcor transformed this property into an award winning mixed use estate that today houses Reddam School, 180 exclusive residential homes, a neighbourhood shopping centre, 80 000m2 of office and business parks, the American Consulate and 700 freestanding homes now individually owned by the previous informal settlement community.

The success of Westlake was noted by minister Jeff Radebe, the then minister of Public Works who stated, 'Strategic state benefits have been realised in this development because it immediately changes the lives of people through the provision of shelter and security whilst it unleashes economic opportunities for our people. It also broadens the tax base for one of the strategic municipalities of this province. I wish to call on all provincial governments to follow this example….'.

Mr Ramaphosa said, 'Rabie and Cavcor share my vision for this country. Their skills and energy in developing projects like Westlake, Marconi Beam and Big Bay at Bloubergstrand can be harnessed with MCI Properties (Proprietary) Limited into a powerful initiative that can make a meaningful impact on the property market to the benefit of all –the rich and poor, the public and private sectors.'

Thus far there have been very few major black empowerment players in the property sector but efforts similar to this joint venture highlight Rabcav’s commitment to assist the emerging generation of black property entrepreneurs. Investec Bank, which has an ongoing relationship with Rabie and Cavcor as a development financier and partner in other joint ventures, recently declared its commitment to empowerment in a document entitled 'The Investec Entrepreneurial Commitment' which was released with its latest annual report.

Investec’s CEO, Stephen Koseff, was quoted recently on the returns on these empowerment investments as saying, 'At the end of the day they will be in line with our financial investments, but there is also a return in building a new entrepreneurial class'.
Publisher: Cape Business News
Source: Cape Business News
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