A transaction that will set the pace for future Broad Based Black Economic Empowerment (BBBEE) deals involving entities within the property sector is at an advanced stage. Balwin Properties Group, South Africa’s largest sectional title developer, is selling a stake to residential property developer, Aobakwe Reginald Koketso Kukama (popularly known as Reggie Kukama in property circles).
On conclusion, the transaction will see Kukama own 10% shares of the JSE-listed entity. Kukama will own the stake through a special purpose vehicle (SPV), of which he will be a 51 percent shareholder.
Kukama is the founder and director of Yaetsho Investments and Projects, a project management and property asset management group, whose flagship project is the Vaal River City Development in Gauteng. A multi-disciplinary entity, the group is also involved in renewable energy, telecommunications and Information Technology amongst others.
Kukama has extensive experience in a number of aspects of the property industry, including greenfield development, redevelopment of properties, education centres, student accommodation, healthcare properties, office accommodation, property banking and property equity investments in excess of R3 billion
Its update on the transaction, in Kukama, Balwin believes it is partnering with the most suitable candidate with just the right skills, qualifications, talents, interests, and abilities. ” Mr Kukama will be a value adding partner who possesses the functional and technical expertise to complement the management skillset and to achieve the ambition of growing the Balwin brand within the South African market.”
Further, the company added that bringing on board a black property developer underscores its commitment to economic transformation. “Balwin has made considerable efforts in transforming its business over the past few years and supports the principles and objectives of the B-BBEE Act. A B-BBEE transformation charter has been developed which outlines Balwin’s B-BBEE strategy and which further sets out the structures and processes which are being implemented to enable Balwin to reach a compliant status this year.”