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MASTER INVESTOR
Dollar industry . But it is being disrupted . Commercial real estate is undergoing a massive era of disruption , be it regarding technology or ESG , whether that ’ s the focus on service or operations . It will be very different , and I guess the redeeming quality is that real estate has probably never looked more attractive for large institutional investors looking for a secure income ; even if lease periods come down , there are strong covenant underpins .
Moreover , the investment criteria of that institutional capital , particularly from a technology and client service perspective , will demand a lot more from the real estate industry . So it ’ s a phenomenal time to deliver creative solutions to help the industry embrace change .
Any key insights , knowledge or lessons that you gained that you would like to share ? The real estate industry realises they need to innovate . Certain players embrace change quicker than others and are open to more innovative solutions . This is why we are seeing certain pension funds and private equity with traditional real estate investments look into PropTech .
Particularly , what they ’ re looking for from market players is innovation , someone to help them grow the triple bottom line , whether revenue , reducing a cost or increasing some social capital .
If you have invested in real estate , include any investments you may have made and the most important lessons you learnt from the experience in your capacity as an investor .
I have acquired a few Billion rands of real estate in the last few years . I have got many deals right , but conversely , I have sometimes made poor investment decisions . I think the most critical issue in real estate is cash flow .
Like any other business , you must make more than you spend . Of course , one must apply a hundred other lessons , like buying the worst property in the best area and how to fund smartly . But to me , it starts with speed to cash and profitability .
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27 MAY / JUNE 2023 SA Real Estate Investor Magazine