Home Creating value through partnerships

Investment Proposition

Intersite’s primary role is to develop and grow PRASA’s assets to generate funding for the Group.

Our mandate is to leverage PRASA’s non-operational and non-strategic assets. We aim to achieve this by undertaking the following:

  1. Preparing the company for investment by a Strategic Equity partner (SEP);
  2. Concluding an investment into the company by a SEP;
  3. Concluding commercial agreements and/or strategic partnership
    agreements with third parties in pursuance of the new strategy;
  4. Providing commercial support services function to the Group;
  5. Undertaking contract / project management work for select
    third parties; and
  6. Developing and managing a shared services model for specific functions
    as identified by the Group.

Aside from the SEP transaction, Intersite seeks to exploit and develop PRASA’s assets through partnerships with private developers. An example of this is the current National Station Precinct Development Programme which aims to develop 25 stations in partnership with various private entities. It is anticipated that these developments will result in an investment of up to R10 billion in the identified stations. The nature of the developments vary from retail, offices and industrial to residential components.

Intersite aims to work with each preferred bidder for any of its properties to complete the zoning and planning required for each site. This will be followed by detailed design, costing and final feasibility.

Our approach to any development partnership as Intersite is receiving development facilitation fees and lease payments. Intersite will also have the option of acquiring an equity stake in each of these developments.