Real Estate Investor Magazine South Africa December 14/ January 15 | Page 20

cover story

debt facilities is still high. All-in pricing still remains in
the region of 8% to 9% for new developments despite
the fact that significant up-front equity of around 40%
to 50% is required from investors and high pre-let
targets greater than 50% prior to debt drawdowns.
In Perspective
With a landmass greater than that of USA, China,
Europe, India and China combined, 54 different
countries, over 2000 languages and diverse cultural
dynamics, investors would do well to narrow their
focus down to a specific region, then to a country, then
a city and finally an area within a selected city.
“Real estate organisations will need to focus on the
markets they really understand, while concentrating
more than ever on the basics of local knowledge and
tenant demand.” - PWC’s Real Estate 2020 Report
Regionally, East Africa is by far the darling of Africa.
Bursting with growth-laden economies, it is forecast
to grow at an average of 6.3% between 2014 and 2019
but could surpass this if oil and gas activities come to
fruition sooner than anticipated, according to Rand
Merchant Bank’s (RMB) fourth annual Where to
Invest in Africa 2014/15 — A Guide to Corporate
Investment. However, every region in Africa offers
opportunities, as well as challenges.
“The starting point is identifying countries with
sustainable stable [[