New black-empowered property fund Izandla Property, which is sponsored by Investec Property (IP) and Investec Property Fund (IPF), was officially launched, in Johannesburg, on Thursday.
Izandla Property’s majority shareholder is the Entrepreneurship Development Trust (EDT), a broad-based charitable trust that facilitates broader societal benefits through educational and entrepreneurial initiatives.
Izandla aims to create value to fund the initiatives of the EDT by accessing quality real estate assets and providing future property clients with a broad-based black economic empowerment (BBBEE) partner who will own, manage and develop their property assets to unlock value through the full property value chain.
IP will support Izandla with the required skills, expertise and knowledge, while IPF will serve as Izandla’s capital partner.
IPF CE Nick Riley said the creation of Izandla was a significant step in the transformation of the property sector.
“Property in terms of transformation has been an underrepresented asset class and I think it is because of the capital-intensive nature of getting into the property market,” he said.
“Izandla is focused on transformation and empowerment. At the same time, it allows us as a minority shareholder to participate in opportunities that we wouldn’t ordinarily be able to in terms of our existing empowerment rating of the fund,” he said.
EDT chairperson Fani Titi pointed out that the EDT could provide the necessary bridge between a powerful business sector and communities.
Izandla Property will, further, leverage the capital, experience, skills and resources of IP and IPF, with the aim of becoming a self-sustaining entity.
“Our definition of success is when we have assisted in creating a fully fledged, standalone business with a team of skilled staff. IPF will initially look to support Izandla through an asset injection and further capital support, as this will enhance its growth prospects and at the same time allow IPF to participate in new and exciting opportunities not previously accessible,” Riley noted
