Real Estate Investor Magazine South Africa Real Estate Investor Magazine - August 2017 | Page 57

WOMEN IN PROPERTY
sifting through a multitude of tax and treaty regimes.
It means connecting with informed and reputable
local counterparties and appointing local tax and legal
experts.
It means being acutely aware of the socio-
economical and geo-political nuances that can only
be truly understood by spending enough time in-
country, peeling the layers from what you think you
understand.
In Grit’s relatively short history of just over 3 years,
we’ve grown from owning two assets in two countries
to a portfolio of 19 assets valued at over US$600
million across five different jurisdictions. It’s been
by no means easy, but through collaboration and
never accepting “no” for an answer, we’ve been able
to mitigate currency, concentration and expatriation
risk to a large extent, drawing on more than 45 years’
collective experience on the continent.
Unexpected opportunity
We are seeing definite opportunities around
corporate accommodation, offices, shopping malls
and distribution centres, but there is also a promising
investment case for schools, hospitals and hospitality
assets depending on the size and growth of the
node. In this regard Mozambique (despite their own
internal challenges), Rwanda, Uganda, Kenya and
Ghana stands out, although they may not seem as
obvious as other markets.
Macro-economic challenges, high inflation and,
subsequently, high interest rates impact all business
owners in-country. The efficient asset management
and tenant optimisation in especially retail centres
can also prove challenging. It’s also important to
understand the longer-term strategy of key tenants.
Grit mainly transacts in hard currency (Euro and
US$) on the continent. The real estate market is also
not deep enough for sector specialisation; hence we
are asset agnostic and base investment decisions on
the quality of the tenant, the quality of the macro
economics, and the quality of the asset. As a result,
we’ve been able to negotiate a number of sale-and-
leaseback transactions across industries.
We also maintain a good working relationship with
the respective Central Banks, keeping them updated
on the timing of expected capital movements.
www.reimag.co.za
In a man’s world
Being a woman in the listed property sector remains a
challenge. We’re not only breaking down walls around
perceptions on Africa, we’re also challenging beliefs on
women in senior positions. Complaining about it is not
enough – we must actively address the issue. Grit leads
the way in this regard with its Chief Operating Officer
and Chief Integration Officers both being female.
Three females are also represented on the board.
African growth
The United Nations predicts that in a little more than
30 years, one in four people globally will live in Africa.
On top of that, according to the International
Monetary Fund, real GDP growth in sub-Sahara
Africa averaged 4.7% annually over the last 20 years
(as reported in 2016), compared to 4.2% in the Middle
East and North Africa (MENA) and 2.1% for so-
called advanced economies.
Combined with its young and growing consumer
base and continued urbanisation (urbanization is
expected to drive over 50% of Africans to cities by
2050, compared to 40% today – African Economic
Outlook) Africa is indeed the last frontier for growth.
Despite these fundamentals, attracting capital for
investment into the continent remains a challenge.
Several of the large infrastructure investment projects
on the continent are currently in a deployment phase,
resulting in smaller investment opportunities that don’t
meet the minimum investment quantum of the larger
international funds.
Having said that, several frontier and emerging
market funds have realised that chasing exorbitant
IRR rates are neither achievable nor sustainable. A case
for sustainable, hard currency distributions at a risk
adjusted rate is slowly gaining traction.
Whilst Africa remains the undeserved Cinderella of
real estate investment, it offers attractive opportunities
for those with the know-how, tenacity and patience to
look further than skin-deep.
Bronwyn Corbett is the Chief Executive Officer
of Mara Delta Property Holdings, the largest
pan‒African focused real estate fund listed on the
Johannesburg Stock Exchange and in Mauritius.
Corbett is married with two daughters and enjoys
stand‒up paddling and travelling to the lesser
explored parts of Africa.
AUGUST 2017 SA Real Estate Investor
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