Trustco to acquire additional Legal Shield shares
Banking on property
Trustco's total ownership of Legal Shield Holdings is expected to increase to 91.35%.
Trustco Group Holdings Limited has announced updates to its planned purchase of additional shares in Legal Shield Holdings Limited (LSH). Originally announced on 23 April 2024, the transaction involves Trustco acquiring an extra 11.35% stake in LSH from Riskowitz Value Fund LP (RVF). This will increase Trustco's total ownership of LSH to 91.35%. The transaction, valued at N$468 million, will be completed by issuing new Trustco shares to RVF. The transaction is expected to close by 31 December 2024.
The acquisition includes valuable assets such as Trustco Insurance Limited, Trustco Life Limited, and a large real estate portfolio that includes developments such as Elisenheim Lifestyle Estate, Lafrenz Industrial Park and Herboth’s Blick Nature Estate. This portfolio consists of 2 473 sellable hectares of prime land across Namibia. Since 2011, this real estate has generated more than N$934 million in cash.
The extensive land bank offers the opportunity to develop more than 26 000 mixed-use plots.
Over the past decade, the company has successfully serviced over 1 106 plots across its developments. With a development pipeline extending for the next 25 years, Trustco is well-positioned to address Namibia's severe shortage of serviced land for residential, commercial and industrial use.
Strong prospects
Trustco deputy CEO Quinton Z van Rooyen said the company would benefit from a recovery in the Namibian property market.
"This acquisition aligns well with our growth strategy and allows us to take advantage of expected capital growth, improved macroeconomic liquidity and increased buyer demand in Namibia's real estate market. By expanding our property portfolio, we're set to benefit from the country's recovering property market following the pandemic.”
He further emphasised the increasing interest from international investors, particularly major players in the petroleum and green hydrogen sectors from the United States and Europe. "The growing presence of these industry titans in Namibia strengthens our confidence and reaffirms our strategy to expand our real estate holdings. Their investments signal strong prospects for the Namibian economy, creating an ideal environment for Trustco to capitalise on these opportunities," he added.
Trustco has submitted a circular detailing the transaction to the Johannesburg Stock Exchange (JSE) for review. Once approved, this comprehensive document will be distributed to all shareholders, providing full details on the proposed acquisition.