R500m finance deal underscores Nedbank's commitment to Listed Property Sector

Ken Reynolds: Gauteng Regional Executive Nedbank Corporate Property Finance

Vividend Income Fund’s (Vividend) recent acquisition of the R790 million Vusani portfolio, financed by Nedbank Corporate Property Finance, has reaffirmed the bank’s position as the market leader in the commercial property finance industry.

Vividend is a JSE-listed property loan stock company, operated under the capable management of Ari Jacobsen (CEO), Bruce Rubenstein, Robert Amoils (FD) and Alan Witt. Since its listing on the JSE in November 2010, the fund has grown from a single property to a portfolio of nine properties valued at more than R515 million.  The growth in the size of its portfolio has placed Vividend amongst the fastest growing listed property funds on the JSE. The Vividend portfolio currently comprises of a mix of office and retail properties, including the Clearwater Crossing value-centre in Johannesburg, the Montclair Mall in Durban and the landmark ‘Metal Box’ office building in Owl Street, Braamfontein.

The existing Vividend portfolio will be further enhanced in April 2012 by the acquisition of the Vusani Portfolio, a portfolio of retail and commercial properties owned by Vusani Property Investments (Proprietary) Limited, a property development and holding company established in 2005. Current shareholders include management and Sanlam Life Ltd.  The Vusani Acquisition will be facilitated in part by a R500 million finance deal, tailor-made by Nedbank Corporate Property Finance.

With a well-balanced and geographically diverse mix of retail and office gross lettable area, the Vusani portfolio includes prominent retail properties such as the Westgate Mall regional shopping centre in Mitchell’s Plain, Cape Town; the Market Square centre in King Williams Town; the Rosettenville Shopping Centre; and the Odendalsrus Shopping Centre. Among the office buildings in the portfolio is an office block situated at 158 Jan Smuts Ave, Rosebank, Johannesburg, as well as the SARS offices in Witbank and Durban CBD. 

"Following the Vusani acquisition, which was completed last week, Vividend will have a property portfolio valued at R1 327 million consisting of 19 properties, with a gross lettable area of 187 143m2," says Ken Reynolds, regional executive: Nedbank Corporate Property Finance, Gauteng. "We are proud to be the finance partner of choice in a property deal of this stature and we believe that it is our ability to tailor financial solutions that anticipate and fulfil our clients' requirements for growth and expansion that ensures that we remain the market leader in the commercial property finance industry." 

According to Vividend, the Vusani Acquisition will add to and enhance the quality, stability and longevity of its earnings by introducing a portfolio of well-diversified, high-quality, well-tenanted, previously owner-managed and recently refurbished properties. The acquisition is expected to allow Vividend to achieve its portfolio objectives in 2012, in terms of gross lettable area, value and income diversity. 

"Given the geographic spread of a mix of well-located, multi-tenanted retail and office properties in both the existing portfolio and the acquired portfolio, as well as the expertise and experience of the management team, we are confident that this transaction will contribute to Vividend's vision of creating a diverse and stable portfolio of assets capable of generating secure, consistent and continually escalating free cash flows. It also presented an ideal opportunity for Nedbank Corporate Property Finance to underscore its commitment to the listed property sector and its investment in platforms aimed to uplift and empower stakeholders," concludes Reynolds.