LEVERAGING OUR SCALE AND ASSETS AND MAINTAINING LEADING BRANDS

Khula Sizwe

HIGHLIGHTS

  • Khula Sizwe Property Holdings commenced its operations in October 2019, with an interim structure overseeing it during this time.
  • In January 2020 Khula Sizwe's first employee was hired in the capacity of Managing Director. Zenzi Mabuza is well equipped for the role with a LLM ICL - Masters of Law: Interational Commercial Law, University of Salford; Manchester and Supply Chain Management, University of Pretoria; and Professional certifications in Logistics and Transport.
  • As Managing Director her immediate responsibility was to focus on the transfer of properties from Barloworld South Africa into Khula Sizwe, securing operational premises for Khula Sizwe and the hiring of employees.
  • Khula Sizwe expanded its staff complement with two additional hires in April and May 2020:
    • Operations Manager:

      Violet Maake (BSC Hons Construction Management).
      Overseeing, developing an effective and sustaining property management team and Tenant satisfaction and Property Management.

    • Financial Manager:
      Bathethi Mathibe (BCompt). Post graduate diploma in Accounting Science (CTA).
      Overseeing financial processes and reporting in Khula Sizwe.
  • Prior to the COVID-19 nationwide lockdown of 26 March 2020, a total of 46 properties to the value of R2.1bn were transferred ensuring the inflow of the company's operational income. Operations reduced considerably due to the global pandemic and the nationwide lockdown which halted the transfers of properties for close to four months, with the next batch of transfers only resuming in August 2020. As at 1 December 2020 57 properties have transferred to the value of R2.4bn.
  • Successfully renegotiated an extension of the availability period within our Nedbank facility which expired end May 2020, the facility has been extended to May 2021. This period is sufficient to cover the sale process of the remaining six properties.
 

KEY DEVELOPMENTS

Appointment of board of directors
The selection of the new Khula Sizwe board was impacted by the unforeseen challenges experienced during the COVID-19 lockdown levels. Barloworld Limited commenced the director recruitment and selection process in October 2020 and is currently finalising the board appointments process.

A Governance Framework; Board Charter; and Annual Board Plan have been drafted and are awaiting the final appointment of the new board for approval.

The appointment of the new board will ensure that Khula Sizwe can move forward with the development of its growth strategy, the implementation of various governance and operational polices which will provide the necessary framework for the operational procedures.

Company Secretary
Khula Sizwe has appointed Luvivi (Pty) Ltd to provide its Company Secretariate function as of July 2020 and oversee its Corporate Governance procedures. SNG-GT have been appointed external auditors of the company.

Khula Sizwe operating profit was R83 million earned from the 57 properties purchased to date as part of the B-BBEE deal and rentals earned from divisions. The operating profit represents the net impact of the transaction on the Group (rental income earned from Barloworld companies) which was offset by an IFRS 2 charge of R85 million relating to the discounted share price offered to the Khula Sizwe shareholders.

KHULA SIZWE

Managing Director

Zenzi Mabuza

  REVENUE*  OPERATING PROFIT/(LOSS) INVESTED CAPITAL (EXCL IFRS 16)
12 MONTHS ENDED  12 MONTHS ENDED  12 MONTHS ENDED 
R million  30 SEPT 2020
AUDITED 		 30 SEPT 2019  30 SEPT 2020
AUDITED 		 30 SEPT 2019  30 SEPT 2020
AUDITED 		 30 SEPT 2019 
Southern Africa  192*    83  (386)  

* Eliminated on consolidation


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