03 December 2019

JSE-listed Vukile Property Fund will sell its
remaining non-retail property assets to Mbako Property Fund in a deal that
it says will contribute to economic and gender transformation in the South
African property sector.

Mbako is a new black-women-owned and -managed
unlisted property fund led by AWCA Investment Holdings (AIH) as its founding shareholder.

Following the finalisation of the transaction,
Mbako will be managed by a new joint venture between AIH and Vukile.

In a statement on Thursday, Vukile CEO Laurence Rapp said the
“innovative deal” enabled Vukile to realise its strategic vision of a directly
held portfolio made up exclusively of retail property in South Africa and is
positive for economic and gender transformation.

In Mbako’s hands, Rapp believes the non-retail
assets are a platform for growth and wealth creation.

Rand Merchant Bank (RMB) financed Mbako’s
R700-million initial property portfolio acquisition from Vukile.

RMB’s Sashen
Naidoo commented that, in funding the Mbako transaction, the
financial services provider is furthering its commitment to economic
transformation by facilitating the creation of a high-impact transformative
investment vehicle.

“Mbako will benefit from the management of
experienced professionals with impeccable credentials and a proven return on
investment record for investors,” Naidoo added.

AIH executive chairperson Sindi Mabaso-Koyana added
that the company was “thrilled to introduce Mbako Property Fund”, which
was structured to achieve superior returns and transformation through
successful property investment.

However, as an unlisted fund, Mabaso-Koyana believes Mbako is coming to market at “the right time” to attract funding and deal flow to take advantage of the depressed listed property market with opportunistic and value-add transactions. 

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