Belelani Capital, a Black Economic Empowerment consortium, has acquired a 24% stake in Pareto, one of South Africa’s largest retail property companies, from the Government Employees Pension Fund in a deal reportedly worth more that R4 billion, (approximately $253.4 million). The deal was funded by Absa Corporate and Investment Bank and Rand Merchant Bank.
Pareto was founded in 1998 and now owns stakes in a number of South Africa’s premier shopping centres representing over 1 million square metres of lettable space. These include the Cresta Shopping Centre and Sandton City Shopping Centre in Johannesburg, the Pavilion Shopping Centre in Durban and the Tyger Valley Shopping Centre in Cape Town.
Until the introduction of Belelani Capital as an investor, Pareto was owned entirely by the Government Employees Pension Fund, whose assets are managed by the Public Investment Corporation or PIC.