Emira disposes of 25-office portfolio to BEE consortium

Head of Zungu Investments, Sandile Zungu.

Emira Property Fund has sold 25 office assets to a black economic empowerment (BEE) consortium, led by Zungu Investments for R1.8bn.

Emira Property Fund has sold 25 office assets to a black economic empowerment (BEE) consortium, led by Zungu Investments for R1.8bn.

Zungu Investments is led by well-known businessman Sandile Zungu, who is the president of the Black Business Council.

Emira said on Tuesday that it would use the proceeds of the deal to grow its offshore portfolio and settle debt facilities.

The property company is trimming its exposure to the long under-performing office market. A year ago, it bought a minority interest in a grocery-anchored convenience retail centre in Ohio, US. It also aims to grow its residential property to between 5% and 10% of its total portfolio.

Zungu Investments will own 51% of the newly formed BEE consortium known as Shankly Property Investments, with Boyno Trade and Invest (Pty) Ltd, taking up 29% while the balance remain with Emira.

Shankly will pay about R1.4bn in cash for the deal, which is  subject to regulatory approval, while the balance will be deferred for five years and will be settled through the mezzanine loan.