Leading black-owned IT distribution group, MB Technologies (MBT), is to acquire a turn-key development for its operating companies through custom finance supplied by Nedbank Corporate Property Finance.
“With Royal Bafokeng Holdings as the group’s controlling shareholder, MBT is the largest unlisted black empowered IT groups in the country and one of the most significant contributors to transformation in the IT market. The group’s strong focus on corporate social investment, black-empowerment and employment equity has seen all of its companies becoming partners of choice within their specific areas of business,” says Ken Reynolds, regional executive: Nedbank Corporate Property Finance, Gauteng.
“Nedbank has approved funding to MBT who has entered into a development agreement with Atterbury Waterfall Investment Company (Atterbury) whereby Atterbury will develop the new facility. On completion MBT will take ownership and transfer of the property for the agreed purchase price,” says Reynolds.
The development will comprise new offices as well as a consolidated warehouse and distribution facility for the MBT Group’s operating companies – Tarsus Technologies, Advanced Channel Technologies, Platinum Micro, Printacom, Channel Capital and Channel Risk Management – within the impressive Waterfall Business Estate in Woodmead/Midrand, Gauteng. MBT anticipates commencing trading in the first quarter of 2014.
MBT, as part of its strategic plan, will consolidate its operating companies into one main distribution facility. Waterfall Business Estate in Woodmead/Midrand was selected due to its exposure to the highway and easy and convenient access for suppliers, customers and staff. The proposed new distribution centre is directly east of the existing Woodmead Retail Park, Woodmead Value Mart and Makro developments and adjacent to the land parcel currently being developed for Cell C.
Waterfall Business Estate is located within the upmarket Waterfall Lifestyle Development and is strategically positioned between the Allandale and Woodmead interchanges on both sides of the N1 Highway with good access and location. Closing the gap between Midrand, Woodmead and Sunninghill, the development is set to transform the entire area into a leading commercial and residential growth node. Suburb demand is expected to increase over the next few years once the infrastructure has been upgraded and the park becomes established.
The business estate enjoys the rights for retail, offices, hotel, industrial and mixed use development and in excess of 1.4 million m² of GLA is to be developed in the estate over the next 10-15 years. On completion, it will create a complete city centre larger than the V&A Waterfront in Cape Town and almost the size of the Sandton CBD.
“The development is in an excellent location and this will attract large blue-chip companies. Nedbank Corporate Property Finance is the market leader in the commercial property finance industry and is proud to be aligned with such an innovative and forward thinking company as MBT. A formidable black-owned group with an excellent management team that has extensive knowledge of the market, MBT complements Nedbank’s model of best practice towards the upliftment and transformation of South Africa. The deal underscores Nedbank’s commitment to black economic empowerment (BEE) through funding directly to BEE companies, thereby playing a role in aiding and accelerating transformation in South Africa,” concludes Reynolds.
MBT was established more than a quarter of a century ago, with Tarsus Technologies as the founding company. Since then the group has grown into one of the leading southern African distributors of tier one international IT technology brands.