Properties Portfolios



Prop
Properties
Purpose:
Our current strategy is to undertake new developments due to their high developmental impact, e.g. job creation, enterprise development, etc. Consideration is given to buildings that are less than five years and underpinned by strong tenant covenants (long-term leases at market or above market rentals and escalations) in markets that are not saturated. For student accommodation, only new developments will be considered as the strategy is to increase supply of new beds.

Sector Focus:
RetailOfficesIndustrialStudent accommodation

Investment Guidance:
Min
R100m
Ideal Range
R100–R250m
Structure
Debt • Equity
Revenue focus
South Africa • Rest of Africa
Preference given to previously under-serviced areas such as townships and rural areas.
ESG
Environmental, Social, and Governance
Whilst our primary objective is to generate returns in line with our clients’ mandates, ESG principles are critical to our investment assessment.
Assessments will be conducted on whether the investment opportunity will create jobs, new enterprises and develop existing ones.
We would further assess whether there is participation of women and youth; the use of green technology in the construction and management of the buildings; and good governance structures in investee companies.

Important Information

  • For equity investments, an ungeared internal rate of return guideline of not less than 15% over a 10 year period.
  • For companies that have gearing, the loan to value of the company should not exceed 65%
  • In cases where debt is sought, the property investment should demonstrate the ability to have sufficient capital growth over the life of the loan.
  • The applicant should demonstrate a level of experience in property development and/or investment or general entrepreneurial or corporate experience.

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