Izandla Property and Sasol Wax Chemicals have partnered to develop a new logistics warehouse and offices measuring 17 020 square meters located in Sasolburg’s Sasol ChemCity Eco-Industrial Park.
Development began on the 1st of May with completion anticipated for the end of April 2019. This is Izandla’s first development transaction since its launch in June 2017.
Encompassing a complete turnkey empowerment solutions, Izandla has acquired the land from Sasol for development, to complete the construction of the facility and to enter into a fifteen year lease with Sasol.
Eric Stouder, the Vice President of Sasol comments:
“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.”
Izandla is a 65% broad-based black-owned property company with a 30% female and youth representation, with the majority shareholder Entrepreneurship Development Trust.
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, 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 life cycle. 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 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” concluded Nonhlanhla.