Cliffe Dekker Hofmeyr is representing Nedbank, the leading South Africa-based financial services group. Our real estate team is advising Nedbank's Corporate Investment Banking division on the registration of mortgage bonds over the property portfolio of Khula Sizwe Property (RF), for the sum of ZAR 2.84 billion.
Khula Sizwe is acquiring the property portfolio from Barloworld, as part of Barloworld's BBBEEE public share offering which will came into effect in October 2019. Our team separately advised Nedbank's Corporate Investment Banking division on the registration of mortgage bonds by Pulse Urban Properties in favour of a Nedbank SPV.
The value of the transaction was circa ZAR 752.2 million and registration was required in five deeds offices before financial year end February 2019. As the borrower had existing security in place with Nedbank's SPV, we needed to vet all existing bonds prior to registration to confirm the causa was broad enough to now include the indemnity that has been provided by the borrower – and, where this was not the case, engage with the relevant registrar regarding the possibility of varying the causa of the bond, notwithstanding the provisions of the Deeds Registries Act. We also assisted by drafting documents for signature by the parties as required in terms of the borrower's MOI. Our work on these matters demonstrates with particular clarity the way in which our team is called to advise leading lenders on highly technical matters linked to sophisticated and high-value real estate transactions. Few teams have the necessary depth of expertise to lead work on transactions such as this at the high end.