JSE-listed Redefine Properties has sold its 22.8% stake in Delta Properties to a women-led black economic empowerment (BEE) consortium in a R1.45-billion vendor-funded transaction. Black females own 51% of the consortium, with the balance of the shares held by Delta’s management and staff, of which the majority is also black.
“We have managed to facilitate the sale of an illiquid counter in a single transaction, locking in capital value and preserving income flow. Strategically, this transaction achieves far more, as it ties in with our own transformation initiatives to support the development of female leaders in the property sector, while also boosting broader empowerment,” said Redefine CEO Andrew Konig.
The holding comprised 162-million shares at R9 a share, issued by Delta to Redefine in 2015 in an acquisition of 15 government tenanted offices. The vendor loan will be 50% settled after an initial period of five years and, at the consortium’s election, the loan can be extended for a further three years.
Other benefits include a higher broad-based BEE rating that is essential for government requirements to secure long-term leases, staff retention and the removal of the potential overhang of Delta shares in the open market.
