ONE Property Holdings And Mpande Property Fund Announce New Direction For Enyuka Property Fund
ONE Property Holdings And Mpande Property Fund Announce New Direction For Enyuka Property Fund. ONE Property Holdings, a privately held property investment company, is excited to announce a new co-investment between its subsidiary, OneEighty Holdings Two and Mpande Property Fund in the rural and lower income property fund Enyuka Prop Holdings.
Enyuka Prop Holdings was established as a specialised lower-LSM retail property fund in 2016 in a 50/50 joint venture between OneEighty Holdings Two and JSE-listed real estate investment trust Emira Property Fund (JSE: EMI). Effective July 2023, OneEighty Holdings Two and Mpande Property Fund purchased Emira’s total interest in Enyuka from the REIT for a consideration value of R641.5 million.
Mpande Property Fund is a majority Black female owned property fund manager with a portfolio in excess of R3 billion, spanning the retail, office, affordable residential and distribution centre sectors in South Africa. As an existing stakeholder in OneEighty Holdings Two (Pty) Ltd, Mpande makes an ideal partner in Enyuka going forward.
Commenting on the transaction, ONE Property Holdings’ CEO Chris van Reenen said: “The joint investment of OneEighty Holdings Two and Emira has delivered substantial growth in the asset base over the past five years. We are thankful to Emira for bringing us the initial opportunity and for the collaboration up to and including their exit. On Emira’s exit, our perspective was that we have reached a level and size that serves as a platform for further growth. We recognised an opportunity to set up structures to facilitate and give further impetus to growth in the fund – whilst continually improving the existing asset base. With this in mind, we have joined forces with Mpande Property Fund. Due to the pre-existing relationship between Mpande and OneEighty Holdings Two, the teams know each other well. We see in Mpande a similar-minded organisation that shares our goals and aspirations, and we are excited to set about achieving our goals together.”
“Nedbank and Rand Merchant Bank acted as joint arrangers for all the debt funding, whilst Futuregrowth Asset Management, Nedbank and Rand Merchant Bank funded the debt in the transaction, and we are appreciative of their support and all the hard work that went into implementing this transaction.” he added.
Sbu Luthuli, Mpande Property Fund CEO, said: “Mpande is proud to be a partner in the Enyuka portfolio of shopping centres. This investment is in line with our investment philosophy of investing in social impact projects that can create an enabling environment to support small businesses and local entrepreneurs to start and grow their businesses, while creating employment opportunities that sustain the economy for the local communities.”
As a social impact investment, the move fits perfectly within ONE Property Holdings’ strategy. Mpande’s entry into the partnership represents a strategic synergy that will further drive innovation and enhance ONE Property Holdings’ market presence. Mpande brings a wealth of expertise and a fresh perspective to the team, which will be invaluable in realising the vision.
As property funds place greater emphasis on the environmental, social and governance (ESG) aspects of business, it is important to note that investments such as this in rural and lower LSM shopping centres frequently deliver a broad set of benefits to communities, aside from the benefit to investors. Social impact investments stimulate economic growth and provide employment within communities; foster community engagement and pride; improve access to goods and services; serve as catalysts for infrastructure improvement such as road and transport upgrades; encourage entrepreneurship which helps diversify local economies; and function as social and community hubs by providing spaces for gathering and interaction. Such investments usually focus on long-term benefits and sustainability, aiming to build positive and enduring social outcomes.
With a strong team in place to manage Enyuka going forward, and a refreshed vision for the fund, plans are already underway to continually improve existing assets, recycle non-core assets and grow the portfolio with assets that fit the strategic profile in the South African market.
