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African Business Network 69
“In this joint venture, we took 52% and Signature took 48%. They do all the structuring, the negotiation and buying of the properties, and they also take all of that cost in their own vehicle. Then we bring the empowerment credentials, and based on these Signature can negotiate such good deals that they are prepared to take on all the other costs,” says van der Merwe.
This mutually advantageous relationship has yielded promising results, particularly for ARC which raised its 52% slice of an initial R1 billion in equity for the real estate fund, but has not actually needed to spend much of this  gure.
The majority of transactions completed by ARC thus far have involved 15-year leases from AAA-rated companies, which
has allowed the  rm to gain 100% loans towards these investments. ARC has sealed R1.5 billion worth of transactions without spending that much of its raised equity.
The A2X stock exchange
However, ARC’s most recent investment has taken place outside of South Africa’s real estate sector and represents a signi cant juncture in the company’s short history.
At the end of March, ARC purchased a 20% stake in the embryonic A2X Markets, which is set to challenge the well-established, but as of yet unchallenged, Johannesburg Stock Exchange (JSE).
Once again, the  rm’s BEE empowerment credentials provided the opportunity for ARC to undertake an ownership stake within this
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