“The Pretoria portfolio was primarily tenanted by government divisions,” says ApexHI MD David Rice. “The company (Isivuno) was set up to manage that portfolio of the building with Broll assisting with the administration of the buildings. “We have now extended the relationship with Isivuno and it will handle all government lease negotiations on our behalf.”

ApexHi is the second-largest property company on the JSE with a market capitalisation of more than R10bn. It has a property portfolio worth R7,6bn and lets more than 400000m² of space to government tenants.  Rice says the relationship with Isivuno is a partnership rather than an employer-employee one.  “As opposed to us employing them, we essentially have a partnership where they share in the upside profits and in the upside increased value.” He says there is “no downside” for Isivuno.

The establishment of separate empowerment property companies by SA’s listed property companies is becoming a growing trend. Redefine Income Fund last year formed a joint venture empowerment company with property player Saul Gumede. The unlisted property company, which is called Dipula Property Fund, was a joint venture between Redefine and Gumede’s Dijalo Property Services, with an initial property portfolio worth R300m.