Iveco South Africa gets R230m loan boost from Nedbank

Iveco South Africa (Pty) Ltd has boosted its financial resources for development and refurbishment of a motor vehicle manufacturing facility in Rosslyn, Pretoria, through a R230 million loan from Nedbank Corporate Property Finance.

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Global vehicle manufacturer, Iveco South Africa (Pty) Ltd has boosted its financial resources for development and refurbishment of a motor vehicle manufacturing facility in Rosslyn, Pretoria, through a R230 million loan from Nedbank Corporate Property Finance.

The finance deal for Iveco South Africa (Pty) Ltd, was struck in a joint venture between Iveco SA Works (Pty) Ltd and Larimar Group Limited.

Regional Executive at Nedbank Corporate Property Finance, Ken Reynolds says the deal demonstrates support for the industrial property and vehicle manufacturing sectors, which are both starting to recover.

“This is a major investment for South Africa involving Fiat Industrial and the Industrial Development Corporation (IDC) and the facility is expected to employ over 1000 people who will be manufacturing trucks and buses for the African market, including PUTCO buses,” says Reynolds.

Nedbank is partnering with long-term client Roman Cendrowski of CEZ Investments CC who will be the landlord of the property. Iveco SA Works will be the tenant and developer in the project and their shareholding is 60% Iveco South Africa and 40% Larimar Group. Fiat Industrial owns 100% of Iveco South Africa and will invest €40-million (approx R544-million) via shareholder loans in Iveco Works. 

Iveco is the 3rd largest global truck manufacturer and holds the leadership position in Brazil and China, constituting 37% of the Group’s turnover. Iveco Europe has undertaken a similar project in South America and the subsidiary constitutes a significant share in the Group’s overall profitability.

Fiat Industrial is recognised as the industry leader in Dow Jones Sustainability World and Europe indices 2012/2013.

The Larimar Group is a diversified group of companies with interests in the passenger transport, freight transport, vehicle manufacturing, vehicle retail, engineering, manufacturing, financial services and property sectors.

The property is situated on the corner of Kitshoff and the R566 which is the main road between Rosslyn and Brits. The location enjoys good exposure and easy access to the R80 and N4 highway.

The total site comprises 181,000m², with an existing structure of 36,000m² and masonry buildings of 2,000m². A new warehouse will be built to the extent of 10,000m², which will house the truck facility, and the renovated warehouse will house the bus facility. The project is expected to be completed in April 2014.

CEZ Investments is the property holding company of Roman Cendrowski and Ela Cendrowska.