Contact details

Investing in Entrepreneurs™
Business Partners is committed to investing in South Africa’s entrepreneurs in every way by providing
them with integrated full-service investment and business solutions.

Should you have any questions or would like additional information, we invite you to call any of the offices
listed below.

Business Partners Limited Business Partners Centre

Corporate Services 5 Wellington Road, Parktown, Johannesburg
Tel: +27 11 480 8700
Fax: +27 11 642 2791
E-mail: enquiries@businesspartners.co.za
Website: www.businesspartners.co.za
Company registration number: 1981/000918/06
ISO 9001:2000 certified
National offices
Bellville East London Nelspruit Queenstown
Tel: (021) 919-3242 Tel: (043) 721-1525/6/7 Tel: (013) 752-3185 Tel: (045) 838-1004
Fax: (021) 919-3333 Fax: (043) 721-1528 Fax: (013) 752-4669 Fax: (045) 838-1008

Benoni* East London Polokwane Richards Bay

Tel: (011) 422-2640 (Arcadia Park)* Tel: (015) 297-1571 Tel: (035) 789-7301
Fax: (011) 845-3005 Tel: (043) 743-5485 Fax: (015) 297-1461 Fax: (035) 789-6727
Fax: (043) 743-0596
Bethlehem Port Elizabeth Springbok
Tel: (058) 303-7842 East Rand (Jet Park) Tel: (041) 582-1601 Tel: (027) 712-1120
Fax: (058) 303-6801 Tel: (011) 397-2616/7/8 Fax: (041) 585-2297 Fax: (027) 712-3519
Fax: (011) 397-2619
Bloemfontein Pretoria (Centurion) Stellenbosch
Tel: (051) 446-0536 George Tel: (012) 664-3397 Tel: (021) 809-2169
Fax: (051) 446-4978 Tel: (044) 873-6112 Fax: (012) 664-2641 Fax: (021) 809-2187
Fax: (044) 873-3397
Cape Town Pretoria (Waterglen)* Upington
Tel: (021) 464-3600 Johannesburg (Industria) Tel: (012) 993-5513 Tel: (054) 331-1172
Fax: (021) 461-8720 Tel: (011) 470-3000 (012) 993-5415 Fax: (054) 332-2334
Fax: (011) 470-3123 Fax: (012) 993-4490
Durban (Westville)
Tel: (031) 240-7700 Kimberley
Fax: (031) 266-7286 Tel: (053) 831-1778
Fax: (053) 832-2389 * Property Services only

Dynamo Citigate 20949/6

 Business Partners
Property Investments
Tailormade
for entrepreneurs

Business Partners property investments

Commercial and industrial property remains a secure investment for entrepreneurs – either to provide long-
term premises for their own businesses or as high-return capital investments.
For the individual small or medium enterprise, renting premises may seem to offer greater flexibility than
ownership. However, long-term tenancy may not be guaranteed and the investment made in improving
rental premises may be lost if a lease cannot be renewed. Property ownership offers not only security of
tenure, but also enables entrepreneurs to grow the overall equity of their businesses. Calculations show
that, by purchasing a property or properties for own use, small and medium enterprises can save up to 50%
on premises costs over a period of 10 years without compromising the business’s own cash resources.
For entrepreneurs seeking a property component for their investment portfolios, multi-tenant properties are
a very attractive and viable option, as these can provide both capital appreciation and rental income.
Business Partners offers investment financing for a wide range of commercial and industrial premises and the
expertise to match the needs of each individual business and/or entrepreneurial investor with the right property.

The benefits of property investment

Acquiring premises for investment purposes offers such benefits as:
• long-term capital appreciation
• reliable, market-related rental income
• the possibility of a post-retirement income from the property

Investment options
Business Partners’ investments are structured using equity, shareholders’ loan accounts and term loans or
any combination of these. Individual solutions are structured once the level of risk and the potential return
investment of the venture have been assessed. The structure of each investment is made using Business
Partners’ unique investment models, Property Equity Partner and Property Risk Partner.

Property equity partner

Business Partners focuses on investing in retail and industrial properties occupied mainly by small and
medium enterprises.
Property Equity Partner is designed for the entrepreneur with an exceptionally viable multi-tenant property
investment opportunity that will offer an above-average expected return on investment (ROI), usually in
excess of 20%.
When recommending equity financing, Business Partners usually makes the investment in the form of a
shareholder’s loan with an equity component. The extent of the equity taken in the business is calculated
in proportion to the contribution made by the company and is usually a significant minority stake. The
entrepreneur’s contribution may also be made in the form of a shareholder’s loan.
During the period of the investment agreement, Business Partners shares in both the risks and rewards
of the venture, receiving dividends and benefiting from capital appreciation. Once the shareholders’ loans
have been repaid in full, the company may wish to sell its shares in the business at market value. The
entrepreneur is always offered the right of first refusal on these shares.
In the case of Property Equity Partner, it is a condition of the investment that Business Partners’ property
management division is contracted to manage the property.
Property risk partner
Property Risk Partner caters for the needs of the entrepreneur with a viable business who wants to
purchase his or her own premises, but who has limited capital or security to contribute or who does not
wish to compromise the business’s cash resources for the deposit.
In this case, Business Partners structures the investment by advancing up to 100% of the loan financing
required. The risk associated with any unsecured portion of the loan is compensated for by Business
Partners receiving a shareholding in the property company. Only those businesses that are potentially able
to generate sufficient cash flow to afford the regular repayments required are considered for this type of
investment financing.
Once the loan portion has been repaid in full, the entrepreneur has the right of first refusal should Business
Partners wish to sell its shares at market value.

Special conditions
Certain conditions usually apply when granting investment financing to entrepreneurs for a property
purchase. These are:
• The maximum repayment period for any property investment is ten years.
• Business Partners invests in small and medium enterprises across all sectors, with the exception of
farming, on-lending and non-profit organisations.
• In order to qualify for Property Risk Partner or Property Equity Partner, the property must be
registered and owned by a new company.

The Business Partners difference

Business Partners has been investing in entrepreneurs for twenty-five years and is the only specialised
investment company for small and medium enterprises in the country.
The company’s risk financing model is internationally regarded as highly innovative and ideal for use in a
developing economy. Similarly, the Business Partners’ due diligence process is thorough, tried and tested,
often exposing inherent risks in a deal. This however is no guarantee of success and it is ultimately the skills
and dedication of the entrepreneur that determine the level of success.
Business Partners’ systems and processes are ISO 9001:2000 certified and the company is the first
financial institution in the country to be accredited in this way.
Some of the many services the company offers to assist and enable entrepreneurs include:
• a free business planning model, which is accessible on the Business Partners web site at www.
businesspartners.co.za
• easy access through a nation-wide network of offices
• a range of information leaflets, available free at all Business Partners offices
• a free initial consultation for entrepreneurs with a viable business plan at any Business Partners office
• the best expertise and experience in the small and medium enterprise sector that the country has
to offer
• personal service from a team of dedicated Portfolio Managers
• a database of over 400 business consultants, mentors and sector specialists that are available to
entrepreneurs
• a property broking service to assist entrepreneurs in finding rental premises or suitable properties
to purchase for their businesses
• a property management service both for entrepreneurs with their own large premises to manage or
with investment premises that require intensive management.