Enigma Property is committed to the transformation and implementation of meaningful black economic empowerment, which is essential for sustainable economic growth in today’s environment.
We aim to leverage our network and skills to create tailor made opportunities for direct B-BBEE ownership, investment and skills development opportunities. This is achieved through various platforms established to facilitate bespoke direct B-BBEE ownership and investment and will ensure that each investment vehicle is majority black owned.
Enigma offers solutions to companies who require additional points on their B-BBEE scorecard. This is achieved through a sale and lease-back of property assets. The Seller/Lessee will be able to recognise BEE Ownership points via the disposal of the asset and enhanced preferential procurement recognition spend points through the lease back of the asset to an empowered supplier.
The Enigma Sale of Asset structure
The Amended Codes of Good Practice allows for a company to execute a Sale of Assets (SOA) to a black owned entity, therefore assets or equity instruments may be recognised to the value of the assets sold as its contribution towards the ownership pillar of the codes.
Enigma has developed a strategy that will enable the participation of black business in the property sector through the SOA transactions. Through this arrangement, Enigma has partnered with 100% black owned companies to form a property holding structure with direct 51% black ownership. The SPVs will have a specific goal of acquiring properties with the purpose of engaging with potential partners for the purpose of SOA transactions.
The Enigma Lease-back agreement for preferential procurement benefits
As preferential procurement has such an impact on the B-BBEE performance of a company, it is also one of the more difficult elements to transform, as is it specific to each business. It is for that reason that lease back of property assets plays an important role in the transformation strategy.
By leasing the property back from a 51% black owned company, effectively means that the SPV becomes a supplier to the business, meaning that 125% of the expense is recognised on the procurement scorecard.