Q&A WITH HEIDI RIX, DIRECTOR FOR INVESTOR SERVICES
Asset management include aspects such as market intelligence and research as well as property sector specifics, projections, appraisals and capital projects, strategic leasing and renewals planning, value add initiatives and income risk mitigation – all of which address the strategic long term planning and investment growth of the asset under management.
Q&A WITH MALCOLM HORNE, GROUP CEO, EAST AFRICA, INDIAN OCEAN, AND SADC
Tell me about the real estate markets in East Africa, Indian Ocean and the SADC region
Although Nairobi is still a preferred location for many global organisations entering the market, many are investing heavily into other areas in the Indian Ocean and the SADC region. Major real estate investors in Malawi include the government, institutional investors, the Asian community, foreign and local real estate companies.
Recently, Malawi Housing Corporation, an arm of government, partnered with a Chinese company investing in real estate and lately, we have noted that the Asian community has teamed up and invests in all real estate sectors.
When one considers the economic and political factors and the eagerness of government to incentivise potential investors, the real estate sector will grow substantially in the next five to 10 years and with this growth, comes vast opportunities for investors. For example, with rapid urbanisation, Malawians are now adapting the Western culture, wanting modern homes, sophisticated retail spaces as well as offices and industrial properties to cater to their needs.
Closer to SA, Namibia is often described as Africa’s optimist and with good reason. Not only does it enjoy one of the continent’s most pleasant, peaceful and politically stable environments, but also an infrastructure to rival many developed countries.
While the rest of the world is still recovering from the impact of the US housing loan crisis, rising inflation and financial crisis in Europe, Namibia’s real estate sector continues to grow on all fronts. In recent years Namibia has become a new international property hot spot with new developments and ambitious construction projects springing up in most major hubs as well as areas which provide adequate disposable income to warrant development.
Zambia is another investment gem in the region, what’s more, the country has signed double taxation agreements with a number of European, North America, African and Asian countries, as such, investors from these countries are not liable to tax in more than one country or territory. What’s more, the government offers a well-balanced package of fiscal incentives in priority areas as well as additional negotiated benefits towards strategic investments.
Where has the Group seen the most success in the last year?
Q&A WITH ELAINE WILSON, DIVISIONAL DIRECTOR RESEARCH AND MARKETING
Talk to us about your market research and how it plays a pivotal role in where you choose to invest
Research is the cornerstone of our business, and with non-transparency and lack of data in some countries, it is essential to have feet on the ground and this is perhaps an area where we differentiate ourselves from the market. We have operations in over 15 countries in Sub-Saharan Africa and this is useful as we have a team of dedicated researchers who have in-depth knowledge of the countries we operate in and have presence in. The research aspect also allows for further expansion into the continent, importantly, our brokers, asset managers and clients tap into this research which then allows them to make informed decisions.
We approach research differently, instead of just looking at rental levels or what lease terms are for example, we focus on factors such as legislation issues in different markets and how these factors impact on the property investment. In essence, our research is tailored such that an investor learns from it, use a guide or reference and assist them in making decisions about their existing and potential property investments.
Q&A WITH LEONARD MICHAU, DIRECTOR AND HEAD OF OPERATIONS WEST AFRICA
Which countries are investors eyeing in the West Africa region?
As Broll celebrates ten years in Nigeria, business here has taken centre stage, closely followed by Ghana. Ivory Coast and Cameroon have tended to lag with their smaller GDP and the overhang of the 2010/2011 Ivory Coast political instability. However we are seeing a growing interest from private equity developers in the Ivory Coast albeit in the early stages. Nigeria received a boost with the rerating of their GDP, and with the current state of the Ghana economy many investors have focused their attention on Nigeria where they see greater opportunities and higher returns.
Conversely, Ghana’s economy is currently under pressure and we have seen a definite slowdown in deal flow on the transactional side of our business, mostly in leasing, tenant representation and research projects.
In some cases new investors have taken a cautious approach of wait and see, whilst many existing investors have taken a view that property is a long term investment and that the underlying economic fundamentals remain reasonably sound and will improve over the long term. The proposed IMF financial backing will restore confidence; however, this will come with onerous conditions, not welcomed by a large segment of the population.
Each country has its own unique challenges and characteristics for example, in the case of Ghana vs Nigeria, the dynamics of doing business in each country is very different despite geographically being close to each other. Therefore it is important that investors take cognisance of this and do their in country homework.
How does Broll intend on growing business?
It is our intention to open offices in Ivory Coast and Cameroon on the back of client mandates recently secured and demand for professional property services. We see huge growth potential in the corporate real estate and tenant representation space while facility management has gained significant momentum on the back of international companies wanting to outsource this service. Retail leasing and mall management have been a core part of our business during the initial years and this continues to grow on the back of the surge in new retail developments and positive demographics.
We have been operating in Ghana and Nigeria for 9 and 10 years respectively and are very fortunate to have experienced our most successful trading year to date. We have seen growth across all our operational divisions with buildings under management in West Africa now exceeding $1 billion.
Q&A WITH ROWLAND GURNELL, COO FACILITIES MANAGEMENT
Talk us through Broll Facilities Management and what this entails as well as your footprints in Africa?
Over the years and serving some of South Africa’s largest listed property portfolios, Broll has earned a formidable reputation for delivering quality, effectiveness and value. The ability to cross-reference information from an enormous database compiled from years of experience and exacting market research enables us to provide unique, cost-effective solutions for our clients. Focused teamwork and specialised skills ensure that you get the optimum service to match specific goals.
What has been the two major trends in facilities management you have seen across the continent and how have these impacted or will impact on the real estate sector?
Africa is a growth area for many global companies with presence on the continent. Many of these companies want the same office accommodation and services they would get in Europe or America and it is here that we can provide this through the training and employment of the local community. Another trend we have noticed is that in many countries, these global companies want to have policies, procedures and Service Level Agreements introduced and we are in a position to assist with this and introduce our Computerised Maintenance Management Systems (CMM S) across Africa.
What makes Broll Facilities Management unique?
We have vast experience across all sectors of the Facilities Management sector and expertise within hard and soft services. We also have the 24/7 Call centre which runs on our highly sophisticated CMM S Software. Broll FM has a large footprint across the African continent and is well placed to look after the facilities of global and local companies in Africa.
Q&A WITH KEN GERBER, DIRECTOR AND HEAD OF OCCUPIER SERVICES
Talk us through CRES in SA and in Africa. What trends do you see emerging in this sector?
CRES shifts the focus of real estate to the demand side of the equation, to property’s most fundamental functional role which is to support and enhance the operations of the businesses who pay to use it. We look at the role that corporate real estate can play not only as a facilitator to business and economy, but also in providing a competitive advantage to individual companies.
Understanding what occupiers need from their real estate in Africa is founded on the two underlying cornerstones required of any portfolio, i.e. that it is fit for purpose and provides value for money. Particularly within the rest of Africa, supply is evolving to meet those needs, and real estate is truly becoming a creator of change and is in fact changing the face of entire markets and cities.
Why should investors and tenants choose Broll CRES? How are you perceived in the market?
Broll’s Corporate Real Estate Service is unique in the South African market as a purely tenant focused service. Our successful track record of delivery of real estate services for some of our most significant clients – including leading financial service providers and other global companies – and we have delivered benefits to our clients of:
- R1.7 billion savings in the past 12 months alone
- 52,000 invoices totalling R1.3 billion processed to date
- 7,200 payments processed per month
- Average return on client investment of 1500%
Broll’s platform is based on well-proven processes and technologies using global best practice. Originating from our associated company CBRE, these have been tailored to the South African market. Our clients are therefore able to benefit from leading edge services confident in the experience that Broll brings to allow them to seize opportunities to unlock inherent value within their portfolios and generate sustainable financial benefits in line with their objectives. Broll has proven experience in crafting, implementing and managing flexible strategies to successfully optimise corporate real estate portfolios.
