Nedbank Acquires 50% Stake in Burstone Group's New $42 Million Property Platform

JOHANNESBURG — Burstone Group has officially launched its South African funds management platform, entering into a strategic joint venture with Nedbank Property Partners, a division of Nedbank Corporate and Investment Bank. Under the transaction, Nedbank is acquiring a 50% equity interest in the newly created unlisted platform for approximately R677 million ($41.6 million) in cash.

The underlying seed portfolio holds a gross asset value of R5.155 billion ($317 million), reflecting a 5.0% discount to its book value of R5.429 billion ($333 million) as of March 31, 2026. Because the platform is capitalized with debt equal to 70% of asset value, the acquisition cost for half the equity represents a fraction of the gross property value. Burstone retains the remaining 50% equity interest alongside ongoing fund and asset management mandates.

The newly formed platform is seeded with 14 high-quality commercial properties, comprising five dominant retail shopping centers, such as Zevenwacht Mall in the Western Cape, and nine industrial and logistics warehouses located across Gauteng and KwaZulu-Natal. These assets feature strong tenant profiles operating on long-term leases.

For Burstone, the transaction significantly reshapes its balance sheet. The deal releases capital and is projected to slash the group's reported loan-to-value (LTV) ratio from 39.6% down to a range of 17.5% to 19.5%. Furthermore, the arrangement aligns with Burstone’s broader strategy of scaling asset management fee income, which is expected to rise following the transaction.

The transaction remains subject to customary regulatory conditions, including Competition Commission approval and final property asset transfers. Parties anticipate an effective date no later than December 1, 2026. Burstone is already engaged in discussions with additional institutional investors regarding a potential second close to expand the platform further.

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