Izandla Property has partnered with Sasol Wax Chemicals, a division of Sasol South Africa, for the development of a new logistics warehouse and offices measuring 17,020m², located in the Sasol ChemCity Eco-Industrial Park in Sasolburg, Free State. The development commenced on 1 May 2018 with completion expected at the end April 2019. This opportunity is Izandla’s first development transaction since its launch in June 2017 and underpins its business strategy of providing clients with an effective triple BBBEE partner in the procurement, expansion, and management of real estate assets.
The development encompasses a complete turnkey empowerment solution: Izandla has acquired the land from Sasol for development, will complete the construction of the facility and enter into a 15-year lease with Sasol. Through its partnership with Izandla, Sasol will benefit from Izandla’s strong empowerment credentials with significant procurement spend benefit throughout the lease period.
“We are excited about the relationship with Izandla. Sasol is committed to transformation, so our criteria when looking for partners is to ensure that they can provide a reliable service for our customers as well as help progress diversity and transformation within South Africa. Izandla meets both these requirements,” commented Eric Stouder, the Vice President of Sasol.
Izandla is a 65% broad-based black-owned property company with 30% female and youth representation. The majority shareholder is the Entrepreneurship Development Trust (EDT), a broad-based charitable trust that facilitates broader societal benefits through educational and entrepreneurial initiatives.
Sasol ChemCity Eco-Industrial Park was developed by Sasol with the objective of providing a home for entrepreneurs, industrialists, SMMEs and large businesses that can cater to the requirements of various users and contribute to the socio-economic development of the region.
The construction of the new wax warehouse and the associated offices is a source of pride for Sasol. “The major expansion of our wax plant in Sasolburg meant that we needed a logistics facility that allows us to store products and facilitate delivery to our local customers as well as an improved way to get products to Durban and our international customers,” said Stouder.
Izandla is participating in Sasol’s ChemCity Business Incubator (CBI), a programme for local start-ups and early-stage SMMEs that operate in a variety of different sectors. Part of this initiative will include the intake of graduate students from the Vaal University of Technology to provide training and potentially, permanent employment.
“The future of Sasol’s development is in good hands with Izandla Property. This transaction demonstrates our ability to provide clients with a truly empowered partner that provides an integrated property solution which unlocks value throughout the property lifecycle. We look forward to a building a sustainable relationship with Sasol,” said Nonhlanhla Mayisela, the CEO of Izandla Property.
Since its launch in June last year, Izandla has acquired the seed portfolio from Investec Property Fund (IPF) to the value of R520 million and acquired an office building in Pretoria. The business’ strategy is to acquire and develop quality assets that are underpinned by strong covenants. “The completed Sasol development will be one of Izandla’s prized assets and will strengthen our balance sheet significantly.” Adds Nonhlanhla.