Phatsima will purchase 22 million Growthpoint linked units with a market value of R280 million, based on the closing market price of Growthpoint linked units on Friday, 8 December 2006 of R12.70.

As an integral part of the transaction, Phatsima has also acquired a 2.3% interest in the Growthpoint asset management contract from Investec Property Group Limited. This element of the transaction entitles Phatsima to 2.3% of the asset management fee arising from the asset management agreement in respect of Growthpoint’s property portfolio.

“Growthpoint is committed to achieving meaningful participation by historically disadvantaged South Africans in the country’s economy,” says Sam Hackner, Chairman of Growthpoint Properties Limited. “We are delighted with our new shareholders and BEE partners and look forward to their valuable strategic input and positive contribution at shareholder, as well as board level,” emphasises Hackner.

Phatsima is a black controlled and managed property investment holding company, which has been formed for the purpose of these BEE transactions. It is led by Herman Mashaba, founder of Black Like Me products and chairman of Leswikeng Minerals and Energy and Stocks Building Africa. Herman is also an independent non-executive director of Edcon Limited.

Mashaba, who holds an indirect beneficial interest in Phatsima of 40% through the Herman and Connie Mashaba Trust, is a non-executive director of Growthpoint and will continue to represent Phatsima in this position.

Key role-players and shareholders in Phatsima include the ABM Kalla Family Investment (Pty) Ltd, Selomane Maitisa, The Field Band Foundation, Jacqueline Mafumadi, Tim Modise and Joyce Dube.
 
“We are excited at becoming partners with the undisputed leader of the listed property sector and are committed to a long-term, mutually beneficial relationship as shareholders of Growthpoint and participants in the management contract,” says Mashaba.

Norbert Sasse, CEO of Growthpoint Properties Limited explains that the implementation of both BEE transactions are major steps towards ensuring that Growthpoint’s BEE equity ownership and control responsibilities are addressed, in terms of the Department of Trade and Industry Codes of Good Practice on Broad Based Black Economic Empowerment and the draft Property Sector Transformation Charter.

“These transactions have introduced BEE partners which are influential role players and who will add value to Growthpoint and its linked unitholders while, at the same time, benefiting historically disadvantaged South Africans,” notes Sasse.

Phatsima will acquire the 22 million new Growthpoint linked units, which will be issued at R11.50 per linked unit as part of a renounceable vendor placing, in terms of the agreements concluded between Growthpoint and the vendors of the Business Connexion property portfolio acquired by Growthpoint.
 
“We have procured third party funding for our BEE partners from Old Mutual Specialised Finance and Investec Private Bank for R215,8 million with Growthpoint stepping in as mezzanine debt provider for the balance of the total funding required being R57.4 million,” say Sasse.

These transactions, combined with Growthpoint’s R1 billion BEE transaction concluded in August 2005 with a BEE consortium comprising Amabubesi Investments,  Miganu Investment Holdings, and Unipalm Investment Holdings Limited, brings the total Growthpoint linked units in issue owned by BEE entities to 122 million or 12,6% of Growthpoint’s total shares in issue.