Izandla Property Fund (“Izandla” or “the Fund”) announced the completion of the development of a new logistics warehouse and offices measuring 17,020m² for the Wax Division of Sasol Chemicals, located in the Sasol ChemCity Eco-Industrial Park in Sasolburg, Free State.
The opening of the building on the 16th May marks the successful culmination of Izandla’s first development project and illustrates the Fund’s ability to deliver a full turnkey property solution to clients. The development was completed within budget and ahead of schedule on the 5th April 2019. The subsequent inclusion into Izandla’s portfolio, brings the Fund’s value of assets under management to circa R800 million, with 15 properties spread across the industrial, office and retail sectors. The completed development represents the Fund’s largest asset.
In addition to the development, Izandla will actively manage the Sasol Chemicals facility while providing strong empowerment credentials to Sasol.
Commenting on the success of the project, Izandla Property Fund CEO Nonhlanhla Mayisela said:
“We are thrilled with the successful execution of the development of the logistics warehouse and offices, and we are equally excited about our partnership with Sasol. This is the start of a fruitful relationship. The opening ceremony was really to acknowledge everyone who has worked tirelessly to ensure the successful completion of the project. We’d like to thank Sasol for entrusting Izandla with delivering a product that accommodates their strategic requirements.”
Eric Stouder, the Senior Vice President of Sasol Base Chemicals comments: “The development of the new wax storage, packing and distribution facility follows on the completion of Sasol’s R13,6 Billion Fischer-Tropsch Wax Expansion Project (FTWEP) in February 2018. Sasol is a leading global producer of medium and hard waxes and this new facility will be an integral part of our strategy to meet wax demand. The new facility is rail enabled and will greatly reduce road transportation safety risks, not only for Sasol but for all South African road users, as we move towards transporting more product by rail. Sasol aims to reduce wax related road freight by 1480 vehicles per annum and this will positively contribute to Sasol’s achieving its Safety goal of ‘Zero Harm’ in the moving and transportation of products.”
The long-term profile of the Wax Warehouse lease for Sasol fits squarely within Izandla Property Fund’s investment strategy of acquiring assets that are underpinned by quality tenants with long dated leases.
Through the Sasol development, Izandla has managed to channel 80% of the total project spend to 51% black owned service providers, including the main building contractor, the professional team and local small to medium sized businesses. This complements Izandla’s commitment to achieving its empowerment objectives along the full value chain of its operations.
“Despite a challenging macroeconomic environment, I am proud of the growth that the Izandla Property Fund has been able to achieve since inception in 2017. As an unlisted fund, we can prioritise long-term income and capital growth over distribution growth. This enables us to weather external volatility and ensure that the growth of the Fund can happen organically. We have a healthy pipeline and will continue to pursue acquisitions that complement our growth strategy”, added Mayisela.