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Vunani Property Investment Fund sells its property fund for R117m

By SA Commercial Prop News 2013-11-12 08:00:00

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Vunani Property Investment Fund CEO Rob Kane said this is an enormously important deal for the fund which will create a springboard for the fund to become a mid-sized and potentially a larger fund.

JSE-listed Vunani Property Investment Fund has been sold to Texton Property Investments for R117m in cash‚ in a bid to increase the size of the fund‚ parent company Vunani Ltd said on Monday.

“This is an enormously important deal for the fund which will create a springboard for the fund to become a mid-sized and potentially a larger fund‚” Vunani Property Investment Fund CEO Rob Kane said.

“The new shareholders are committed to bringing solid deal flow to the fund. There will however be no change to the strategy of the business and we intend remaining an office dominated fund. The new shareholders will bring with them a significant portfolio which‚ subject to shareholder approval‚ will be injected into the fund through the take-up of units‚” Kane said.

Rob Kane has taken up a shareholding in Cozifor which owns 100% of Texton and will remain as the CEO of VPIF. Ms Marelise de Lange will remain as the CFO of VPIF and will be a shareholder. The Texton management team will comprise of the following individuals; Angelique de Rauville, Gerard de Rauville, Chick Legh and Thys van Heerden. Investec Bank will act as the funder.

In compliance with the new DTI BEE codes and the Property Charter, Texton will put in place a BBBEEE share scheme at VPIF level.

Texton MD Angelique de Rauville said the sale of the assets from Vunani to Texton was an example of successful empowerment in the property sector as Texton will put in place a black empowerment share scheme at fund level.

Managing Director of Vunani Limited, Butana Khoza added, “We have been a shareholder in the Manco for the past seven years, and together with VPIF, have built a successful business which has delivered significant value to shareholders.

Before the deal‚ Vunani Property Investment Fund owned 28 buildings‚ with commercial offices making up 93% of the fund’s R1.5bn portfolio.

The transaction is still subject to various conditions precedent customary for a transaction of this nature, including approval by the VPIF board and unitholders.