South African firm Rand Merchant Bank Holding (RMH) announced on June 27, 2016, it made its first direct investment in the property sector. The group, for an undisclosed amount plans to buy a 34% stake in urban renewal property company, Propertuity.

RMB Holdings, which until now focused on investments in the finance sector, said in May 2016 it would explore new opportunities so as to create added value for its shareholders.

“As communicated previously, the overall RMH property strategy will primarily target unlisted opportunities and will continue to follow a phased approach in acquiring its various property investments over the coming years,” the group said in its statement. Once RMH acquires stake in Propertuity, the holding will be backed by Buffet, another South African firm with experience in property development.

RMH has enough resources to fund its new project, depending on the currency used in the transaction. South Africa’s available treasury is R4 billion ($319 million). However, the holding is solvent and can be supported by First Rand Bank, one of SA’s biggest banks and in which RMH holds 34% interest.

Idriss Linge