JOHANNESBURG - Industrial conglomerate group Barloworld Limited on Wednesday launched its public offer for Khula Sizwe Property Holdings, a black-owned property company, in a bid to enable black South Africans to own a stake in a significant property company.
Through this transaction, which is part of the company's vision for social and economic development, Barloworld will sell a portfolio of its properties to Khula Sizwe and lease back the properties for a 10-year period.
The black public, and approximately 14,000 of Barloworld's management and employees, will own shares in Khula Sizwe, with blue-chip Barloworld as the tenant.
Khula Sizwe will be providing the opportunity for black South Africans to own their share of a commercial property portfolio valued at R2.86 billion. Barloworld said the total value of the transaction was R3.5 billion.
The other component of the B-BBEE Transaction is the Barloworld Empowerment Foundation Trust, which has a direct three percent stake in Barloworld Limited and is focused on poverty alleviation and youth development.