Strategic Partner
African Rainbow Capital Real Estate (“ARC RE”) is a joint venture set up between African Rainbow Capital (“ARC”) and the Buffet KLT Consortium (“BuffetKLT”) focusing on empowerment linked property transactions. As a well-capitalised and majority black owned property investment vehicle, ARC RE believes that it is well placed to partner with leading South African corporates and property funds in respect of their underlying property portfolios. ARC RE will be jointly headed by Mark Fox and Kentt Ellis, both of whom come from a structured finance and property background, supported by key directorate representing ARC and BuffetKLT.

 

ARC

ARC is a fully black owned and controlled investment company focusing primarily on the South African financial services industry and businesses that deliver exceptional returns on equity. Chaired by Patrice Motsepe and jointly headed by former Sanlam CEO Johan van Zyl and former Sanlam Investments CEO Johan van der Merwe, ARC seeks to build interests in banking, insurance, distribution, asset management, property, private equity and healthcare administration and management.

Ubuntu-Botho Investments was created in 2004 with its initial main purpose, building black controlled capital through being Sanlam’s empowerment partner. In addition, the vision of UBI from the outset was to make a difference in the lives of ordinary South Africans by being the premier black-owned and controlled financial services entity. The shareholding structure of UBI includes a broad base of stakeholders that includes church groups, trade unions, youth groups and women’s groups, amongst others.

 

BUFFETKLT

ARC’s rationale for the joint venture with the BuffetKLT was largely underpinned by its partnership investment ethos and track record specifically in the property sector. Jonathan Beare is the controlling shareholder of Buffet, and as a group the consortium is a substantially privately held property and private equity investor in South Africa.

A key success factor in the Buffet and KLT stories has been their partnership formula with entrepreneurs and businesses across all the various property sub-sectors as well as in direct private equity. Over the years, this formula has led to the creation of, or been a growth catalyst to, some of the leading residential, commercial and hospitality property companies in South Africa and abroad.

This is a similar theme that ARC RE is looking to achieve going forward in building a significant presence in the property landscape across a variety of platforms, partners, funds and direct investments both in the traditional asset types as well as some of the niche sub-sectors.