The Trustco group has concluded a transaction to acquire one of the largest property developments in Namibia through the acquisition of Elisenheim in Windhoek.
TRUSTCO Group Holdings Limited (‘Trustco’) through its fully owned subsidiary, Trustco Property Holdings (Pty) Ltd, signed a Sale of Shares Agreement with Philco Twenty Two (Pty) Ltd (‘Philco’) whereby Trustco will acquire the entire shareholding in Elisenheim Property Development Company (Pty) Ltd (‘Elisenheim’), for an all-inclusive sum of N$ 300 million.
The Elisenheim development was started by three Namibian entrepreneurs whose vision it was to build a quality town environment and thus provide housing to 6000 families.
Elisenheim owns a portion of the Farm Elisenheim. This land consists of 1186 hectares and is an approved Township. Town planning on the land is ultimately envisaged to include 6000 erven, 5 churches, 3 schools, general residential, retail and commercial business zones, a nature estate with hotel sites, equestrian facilities and stables, a nature camp and various trails and outdoor facilities. This development comprises of 21 extensions, planned and approved to evolve through 13 phases, as well as a nature estate.
The Elisenheim development is situated within the Windhoek Basin in Windhoek, the capital of Namibia, and falls within the city’s municipal boundaries. Data on available land indicates that the Windhoek basin is almost fully developed and there is an acute shortage of serviced land for development.
A current conundrum to the housing challenge is the question of prices for houses – as recently highlighted in various local and international media articles. These articles noted the trend that Namibia, with a population of merely 2 million in 2012, ranked fourth among the world’s biggest housing price increases; only ranking behind such known housing meccas such as Hong Kong, Dubai and Brazil. The media further indicated that the fast increasing prices of properties in Namibia was rapidly forcing first-time property buyers onto the fringes of home ownership and is exacerbating the housing shortage on a nation-wide scale. This acquisition is therefore of strategic importance to Trustco as it continues to consolidate its property portfolio.
Chairman of the Trustco Group Holdings Ltd Board, Adv. Raymond Heathcote, SC, said that the transaction is subject to various approvals, including final approvals by the Board, Shareholders of the Holding company and the Namibian Competition Commission. “I am extremely excited about this acquisition and believe shareholders of Trustco and the Namibian population at large will benefit greatly. It is part of Trustco’s strategy to align its business models with the needs of the people in the countries in which it operates,” Heathcote said.
Quinton van Rooyen, the Group Managing Director of the Trustco Group, emphasized that a development of this magnitude will require the cooperation of all stakeholders including the Ministry of Regional and Local Government and Housing, the City of Windhoek and the Townships Council. In this regard, the relevant authorities have been apprised of our intentions, van Rooyen said. In particular, van Rooyen said that he will call on all property developers in Namibia to take part in this massive initiative. “We cannot do this alone,” noted van Rooyen “and to make this fifteen year project a success, we will need to call on the collaboration of all willing property developers in Namibia and elsewhere.”
The very successful Phase one of the development was started by Philco during 2010. Philco will retain responsibility for finalization of the properties situated in this phase. For enquiries and information related to phase one contact: Mrs. Cornia van den Berg on +264 61 251736.
Trustco intends to develop the remaining phases with the aim to provide serviced land to participating developers as speedily as possible. Activities on the next phase (phase 2) will commence as soon as practical.
Information on sales of property in phases 2-13 must be directed to elisenheim@tgi.na.
For further information please contact:
Bob Kandetu
CORPORATE COMMUNICATIONS
061 275 4000
Email: BobK@tgi.na
