JSE-listed property group Growthpoint Properties (GRT) has announced that is has sold 2.3% of its linked units in issue to Phatsima Properties in a black economic empowerment deal. 

 
Phatsima will purchase 22 million Growthpoint linked units with a market value of 280 million rand, based on the closing market price of Growthpoint linked units on the 8th of December 2006 of 12.70 rand.
 
"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," the group said.
 
Sam Hackner, chairman of Growthpoint, said the group was committed to achieving meaningful participation by historically disadvantaged South Africans in the country's economy.
 
"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," noted 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.
 
"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," said Mashaba.
 
Norbert Sasse, CEO of Growthpoint Properties Limited, said that the implementation of both BEE transactions were 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 11.50 rand 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 215.8 million rand with Growthpoint stepping in as mezzanine debt provider for the balance of the total funding required being 57.4 million rand," say Sasse.
 
These transactions, combined with Growthpoint's 1 billion rand BEE transaction concluded in August 2005, 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.