Real Estate Investor Magazine South Africa April 2018 - 100th Issue! | Page 15

BRONWYN CORBETT
BRONWYN CORBETT’S PROPERTY INVESTMENT PRINCIPLES
In Grit’s case, we don’t focus on a specific asset class or sector – the market in Africa is simply not deep enough
for this yet.
Apart from macro-economic considerations, we focus strongly on the following:
1. Counter party strength. Our income streams largely depend on the ability of our tenants to continue servicing
their rental agreements. Dealing with blue-chip international businesses, often with a guarantee from the
holding company, provides additional assurance
2. Quality and location of asset. Property investment has a long horizon and listed real estate on the continent
is in its infancy. It’s therefore even more important to us to buy the right quality asset in the right node. Local
partners are often best placed to advise on nodal development and we maintain a close relationship with
our key tenants on their future corporate accommodation needs. Having the right quality asset in the right
location means you will always have demand for your asset.
3. Local partners are extremely important. They provide insight into local customs and understand the nuances
of doing business. On a more corporate level, they also advise on trends, risks, finance opportunities, structur-
ing, etc.
4. Geographic diversification, As we operate in emerging frontier markets, this diversification is key and we do
not want more than 25% of our portfolio exposed to one geography. We currently own real estate in 6 coun-
tries and will be entering Senegal as a 7th market.
SA Real Estate Investor Magazine APRIL/MAY 2018
13