BPOPF Acquires 84 Units in Babereki’s Seriti Estate 

  • CCA says acquisition will not reduce number of market players or lessen competition

 

GAZETTE REPORTER 

 

The Competition and Consumer Authority (CCA) has unconditionally approved the acquisition of 84 units in Seriti Estate, Lot 12107, Mogoditshane, by Seventy5 Degrees (Pty) Ltd, acting on behalf of the Botswana Public Officers Pension Fund (BPOPF).

 

This decision was reached following a thorough review of the proposed transaction as detailed in a report released by the CCA.

 

The transaction was formalised under a sale agreement dated 8 October 2024 between BPOPF and Babereki Enclave (Pty) Ltd, marking a significant change in ownership.

 

Change of control 

 

“Following the implementation of the proposed transaction, the target property will be owned by BPOPF and managed by the acquiring enterprise,” the report noted. “This constitutes a change of control for purposes of section 45 of the Act.”

 

Seventy5 Degrees, a private company incorporated under the laws of Botswana, facilitated the acquisition. The company is owned by Batswana entrepreneurs Baalakani Numbile and Ronald Kabelo Modikana.

 

According to the report, the ultimate acquirer, BPOPF, is a pension fund established under the Retirement Funds Act No. 38 of 2022 to serve public service employees.

 

Competitive market

 

The seller, Babereki Enclave, is a special purpose vehicle jointly owned by Babereki Investments (Pty) Ltd, incorporated in Botswana, and IHS Fund Two (Namibia GP) (Pty) Ltd, a Namibian entity.

 

Babereki Enclave is best known as the developer and owner of Seriti Estates, a residential project.

 

The CCA’s assessment underscored the broad and competitive nature of Botswana’s real estate sector.

 

Highly diverse 

 

“The real estate market is highly diverse and characterised by well-established companies and individuals,” the report stated, adding that customers in Botswana have ample choices, demonstrating a healthy competitive landscape.

 

Both parties involved in the transaction play specific roles in the property market. Babereki Enclave operates as a property developer but does not control any enterprises in Botswana.

 

Similarly, Seventy5 Degrees acts as a property asset manager, managing industrial and commercial properties nationally on behalf of BPOPF for whom this acquisition aligns with a broader investment strategy.

 

Unequivocal

 

Established in 2001 following the government’s decision to transition public officers’ pensions from a Defined Benefit Scheme to a Defined Contribution Scheme, BPOPF has since grown into a significant player in Botswana’s property market, holding extensive residential and commercial real estate portfolios.

 

In its competitive analysis, the CCA found that the merger would not reduce the number of market players or lessen competition. “The implementation of the proposed merger is not likely to result in a substantial lessening of competition,” the report emphasised.

 

The transaction was also evaluated for its impact on public interest and the findings were unequivocal. “The proposed merger will not have any negative effect on public interest matters in Botswana as per the provisions of section 52(2) of the Competition Act 2018,” the CCA stated.