Nedbank buys half of Burstone's new $42M property platform
What's the deal? South Africa's BurstoneDealroom has a profile for this one. Try Dealroom → Group has agreed to move 14 malls and warehouses into a new unlisted platform and sell half of it to Nedbank Property Partners, part of Nedbank Corporate and Investment BankDealroom has a profile for this one. Try Dealroom →, for about R677 million ($41.6 million). Burstone keeps 50% of the equity and stays on as fund and asset manager.
What's inside: The seed portfolio holds five retail properties and nine industrial and logistics assets, including Zevenwacht Mall in the Western Cape and warehouses in Gauteng and KwaZulu-Natal. Burstone describes the malls as dominant rural and peri-urban shopping centres and the warehouses as backed by strong tenants on long leases.
The price: The platform is valued at a gross asset value of R5.155 billion ($317 million), a 5.0% discount to its R5.429 billion ($333 million) book value. NPPDealroom has a profile for this one. Try Dealroom → pays for its stake in cash; the platform starts with debt equal to 70% of asset value, which is why half the equity costs far less than half the property.
The numbers: Burstone, formerly Investec Property FundDealroom has a profile for this one. Try Dealroom →, held R13.9 billion ($854 million) of directly owned South African property at 31 March 2026. The deal releases R4.5 billion ($276 million) and cuts its loan-to-value ratio from 39.6% to between 17.5% and 19.5%.
Why now? A South African funds platform was a stated goal for Burstone, which already co-invests abroad alongside Blackstone and HinesDealroom has a profile for this one. Try Dealroom → in Europe and with IrongateDealroom has a profile for this one. Try Dealroom → in Australia. It is now in talks with an unnamed institutional investor for a second close.
What could go wrong? The deal needs Competition Commission approval and property transfers, with an effective date expected no later than 1 December 2026. The price carries a 5% escalation on properties still untransferred three months after approval.
The signal: For investors in South African listed property, the deal shows a local real estate investment trust bringing bank money into existing malls and warehouses — freeing capital while retaining the management mandate.
Read more: riotimesonline.com
Image credit: Brett VA
