Nedbank Corporate Property Finance is playing a role in enabling growth and jobs in the vehicle manufacturing sector by funding the construction and refurbishment of a R230-million motor vehicle manufacturing facility for Iveco South Africa (Pty) Ltd, a joint venture between Iveco SA Works (Pty) Ltd and Larimar Group Limited, in Rosslyn, Pretoria.
“This deal demonstrates Nedbank’s support for the industrial property and vehicle manufacturing sectors, which are both starting to recover. This is a major investment for South Africa involving Fiat Industrial and the Industrial Development Corporation (IDC) and the facility is expected to employ over 1000 people who will be manufacturing trucks and buses for the African market, including PUTCO buses,” says Ken Reynolds, regional executive: Nedbank Corporate Property Finance, Gauteng.
Nedbank Corporate Property Finance is partnering with long-term client Roman Cendrowski of CEZ Investments CC who will be the landlord of the property. Iveco SA Works will be the tenant and developer in the project and their shareholding is 60% Iveco South Africa and 40% Larimar Group. Fiat Industrial owns 100% of Iveco South Africa and will invest €40-million (approx R544-million) via shareholder loans in Iveco Works.
Iveco is the 3rd largest global truck manufacturer and holds the leadership position in Brazil and China, constituting 37% of the Group’s turnover. Iveco Europe has undertaken a similar project in South America and the subsidiary constitutes a significant share in the Group’s overall profitability. Fiat Industrial is recognised as the industry leader in Dow Jones Sustainability World and Europe indices 2012/2013.
The Larimar Group is a diversified group of companies with interests in the passenger transport, freight transport, vehicle manufacturing, vehicle retail, engineering, manufacturing, financial services and property sectors.
The property is situated on the corner of Kitshoff and the R566 which is the main road between Rosslyn and Brits. The location enjoys good exposure and easy access to the R80 and N4 highway. The total site comprises 181,000m², with an existing structure of 36,000m² and masonry buildings of 2,000m². A new warehouse will be built to the extent of 10,000m², which will house the truck facility, and the renovated warehouse will house the bus facility. The project is expected to be completed in April 2014.
CEZ Investments is the property holding company of Roman Cendrowski and Ela Cendrowska.
“Cendrowski has been a Nedbank client since 1991 and he has solid experience in properties such as this. Supporting this venture is yet another way of underscoring Nedbank Corporate Property Finance’s commitment to enabling opportunities in the property market for our clients,” concludes Reynolds.