Trustco Group Holdings Limited (Trustco) has announced its acquisition of an additional 11.35% interest in Legal Shield Holdings Limited (Legal Shield) from Riskowitz Value Fund LP (RVF) for N$468 million. This will increase Trustco’s holding in Legal Shield to 91.35%.
The strategic transaction fortifies Trustco’s investment footprint in the insurance and real estate sectors in Namibia, both primed for substantial growth in the post-pandemic landscape. The coveted assets acquired encompass Trustco Insurance Limited, Trustco Life Limited, and an extensive real estate portfolio spanning an impressive 2,473 sellable hectares (6,112 acres) of prime real estate strategically positioned across Namibia.
This real estate portfolio has demonstrated its value-generating prowess, generating cash in excess of N$934 million since 2011. Notably, the current average selling price for the portfolio stands at NAD 1,800 per square meter, underscoring the immense potential for capital appreciation and revenue growth within this asset class. This vast land bank presents an unparalleled opportunity, with the potential for over 26,000 mixeduse erven to be developed. The real estate portfolio has an established a proven track record, successfully servicing more than 1,106 erven across all its developments over the past decade. Moreover, the company boasts an ambitious development pipeline extending another 25 years.
Namibia is experiencing an acute shortage of serviced land, for residential, commercial and industrial purposes. Quinton Z van Rooyen, Deputy CEO of Trustco, expressed enthusiasm about the transaction, stating: “This acquisition underscores our commitment to creating long-term value for our investors and allows us to capitalize on the anticipated capital growth, improved liquidity, and buyer demand in the Namibian real estate market. By expanding our real estate portfolio, we are poised to benefit from Namibia’s resurgent property market in the post-pandemic era.” The transaction is subject to customary regulatory approvals and is expected to be finalized by July 31, 2024, or as otherwise agreed upon by both parties. Trustco will issue 400 million new shares to RVF at NAD 1.17c per share in two tranches of 200 million shares each.