Independent, black-owned and managed investment holding company Southern Palace Properties has acquired an 8% stake in Growthpoint Properties from the Public Investment Corporation’s (PIC’s) Government Employees Pension Fund (GEPF) for R4.5-billion.
Standard Bank and Bank of America Merrill Lynch would equally fund the deal that was structured and arranged by Southern Palace advisers Symphony Capital.
Parent company Southern Palace Group CEO Lucas Tseki hoped that the transaction, for which all conditions precedent were fulfilled, would open doors to other such “transformational” deals.
The acquisition made Southern Palace the largest, noninstitutional shareholder in Growthpoint and the second-largest shareholder after the GEPF.
The deal allowed the PIC to rebalance its property portfolio and facilitate a transformational transaction in the property industry.
The new shareholding would also boost the black economic-empowerment credentials of Growthpoint.