Summary of Proposed Investment
Project Number
7046
Company Name
WIP Motors (Pty) Limited
Date SPI Disclosed
May 16, 1995
Country
South Africa
Industry
Tourism, Retail and Property
Status
Completed
Sector
Retail (Including Supermarkets, Grocery Stores, etc.)
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : May 31, 1996
Signed : Jun 26, 1996
Invested : Sep 10, 1996
Project Description
SUMMARY OF PROJECT INFORMATION
Project Name South Africa, WIP Motors
Region Sub-Saharan Africa
Sector Automobiles
Project No 007046
Company Name WIP Motor Holdings
Location of project
and Description of Site The project will be located at 22 Anderson Street, Central Johannesburg, South Africa.
Projected Board Date June 16, 1995
Description of Company and Purpose of Project
The project is to operate a BMW franchise dealership which will engage in the selling of new and used BMW cars, and sale of parts and service to these cars. BMW cars are locally manufactured in South Africa. WIP Motors would be a successor to JSN Motors, a BMW dealer franchise, who has relocated to larger premises at a suburban site in Sandgate. BMW (SA) has undertaken to make a positive contribution to the economic empowerment of previously disadvantaged business investors by awarding the existing dealership to Women Investment Portfolio (Pty) Limited, a consortium of black women investors. To ensure a successful and profitable business, WIP has formed a joint venture with Imperial Holdings Limited (IHL), a successful motor company with diversified operations, to operate WIP Motors. WIP has formed a company, WIP Motor Holdings, to represent their interest and act as the holding company for WIP Motors.
Technical Partner and/or Major Shareholders
The joint venture partners, WIP and IHL, are the major shareholders. WIP was incorporated in September 1994 and represents the investment interests of a consortium of approximately 30,000 women from previously disadvantaged communities. WIP''s primary goals are wealth creation for its members through strategic investment opportunities, which typically target a variety of professional women groups including the YWCA and Young Professional Women. IHL is a diversified industrial holding company conducting business in four decentralized divisions: Car rental, leasing and tourism; Motors; Transport; and Insurance, finance and property. IHL has many years of experience in the motor industry with Toyota, Nissan, Mercedes and BMW dealerships nation-wide. Their car rental subsidiary runs a fleet of 200 BMW cars. They, therefore, have an existing relationship with BMW (SA). IHL will play a major role as a technical partner in the operations of the dealership until such time that the WIP members have acquired the relevant skills and experience.
Project Cost and Proposed IFC Investment
Project Cost: US$2.8 million
IFC Investment: Loan - US$0.5 million
Equity - US$83,000
Environmental Category and Issues
This is an environmental review category "B" project. Potential environmental health and safety issues associated with this project include; disposal and recycling of all motor fluids and oils, fuel storage, fire protection, and general safety issues. The sponsor is committed to providing IFC with a plan addressing the issues identified above.
The Environmental Review Summary is expect to be available on June 15, 1995 at the Public Information Center.
Date SPI sent to PIC May 31, 1995
For additional Information contact: Corporate Relations Unit
Telephone (202) 473-7711
Facsimile (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Project Name South Africa, WIP Motors
Region Sub-Saharan Africa
Sector Automobiles
Project No 007046
Company Name WIP Motor Holdings
Location of project
and Description of Site The project will be located at 22 Anderson Street, Central Johannesburg, South Africa.
Projected Board Date June 16, 1995
Description of Company and Purpose of Project
The project is to operate a BMW franchise dealership which will engage in the selling of new and used BMW cars, and sale of parts and service to these cars. BMW cars are locally manufactured in South Africa. WIP Motors would be a successor to JSN Motors, a BMW dealer franchise, who has relocated to larger premises at a suburban site in Sandgate. BMW (SA) has undertaken to make a positive contribution to the economic empowerment of previously disadvantaged business investors by awarding the existing dealership to Women Investment Portfolio (Pty) Limited, a consortium of black women investors. To ensure a successful and profitable business, WIP has formed a joint venture with Imperial Holdings Limited (IHL), a successful motor company with diversified operations, to operate WIP Motors. WIP has formed a company, WIP Motor Holdings, to represent their interest and act as the holding company for WIP Motors.
Technical Partner and/or Major Shareholders
The joint venture partners, WIP and IHL, are the major shareholders. WIP was incorporated in September 1994 and represents the investment interests of a consortium of approximately 30,000 women from previously disadvantaged communities. WIP''s primary goals are wealth creation for its members through strategic investment opportunities, which typically target a variety of professional women groups including the YWCA and Young Professional Women. IHL is a diversified industrial holding company conducting business in four decentralized divisions: Car rental, leasing and tourism; Motors; Transport; and Insurance, finance and property. IHL has many years of experience in the motor industry with Toyota, Nissan, Mercedes and BMW dealerships nation-wide. Their car rental subsidiary runs a fleet of 200 BMW cars. They, therefore, have an existing relationship with BMW (SA). IHL will play a major role as a technical partner in the operations of the dealership until such time that the WIP members have acquired the relevant skills and experience.
Project Cost and Proposed IFC Investment
Project Cost: US$2.8 million
IFC Investment: Loan - US$0.5 million
Equity - US$83,000
Environmental Category and Issues
This is an environmental review category "B" project. Potential environmental health and safety issues associated with this project include; disposal and recycling of all motor fluids and oils, fuel storage, fire protection, and general safety issues. The sponsor is committed to providing IFC with a plan addressing the issues identified above.
The Environmental Review Summary is expect to be available on June 15, 1995 at the Public Information Center.
Date SPI sent to PIC May 31, 1995
For additional Information contact: Corporate Relations Unit
Telephone (202) 473-7711
Facsimile (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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