NEF SPRINGBOARD FOR TRANSFORMATION,Business Report The (Star),05 Sep 2016,Musa Ndlangamandla
SPRINGBOARD FOR TRANSFORMATION …Fund spurs R800m shareholding for Umlazi, Lamontville folks, pays R11 m into areas' trust THE National Empowerment Fund (NEF) has set a new standard in privatepublic partnerships for transformation through an investment that turned Umlazi and Lamontville.communities, in KwaZuluNatal into economic beneficiaries. The NEF has helped the.communities become shareholders in a shopping centre valued at R800 and will also pay out R11 million to their development Trust. This.comes about as the NEF prepares to relinquish shareholding from Umlazi Mega City (UMC). NEP With 48% shares, the NEF provided the initial loan funding of R51, 8 million to Sizovuna UMC Special Purpose Vehicle, which holds 25% shares. This was between 2008 and 2009. When in 2014 the entity was approached for expansion of the centre, it opted out as the venture had proven its viability and ability to attract other investment. This enabled Sizovuna to raise a total of R145 million which was invested in the expansion of the mall and used to buy the NEF out of the SPV. “The NEF took a lower internal rate of return so that the.community could derive greater benefit.