Real Estate Investor Magazine South Africa February 2014 | Page 50
AFRICA
BY MARK LATHAM
Africa Investment Beckons
Will you answer?
A
frica is abounding with commercial real
estate opportunities for occupiers and
investors alike. This is what prompted
5th Avenue Properties to enter into a strategic
alliance with Savills, one of the largest real estate
service providers in the world. Our goal is to
build a platform in South Africa and Africa to
realise these opportunities and service clients’
real estate requirements in some of the most
exciting and challenging markets in the world
today.
From the sophisticated, mature markets in
South Africa to the emerging markets in subSaharan Africa, opportunities exist in the
commercial, industrial, retail and hotel sectors.
South Africa - Johannesburg in particular - is
emerging as the hub for business in Africa. This is
primarily driven by our transport infrastructure,
air links to Africa and the rest of the world, our
robust financial and legal systems, as well as the
ease of doing business in a world-class business
environment such as Sandton.
The need for office space is also being seen
in the capitals across the rest of the African
continent as foreign direct investment moves
into their emerging markets. The requirements
for corporates do not change regardless of
location: quality office space to house operations,
in a well-managed building, at a competitive
market-related rental. Demand for this space is
outstripping supply across these cities, resulting
in high occupancy costs or the issue of space
simply not being available. This creates fertile
ground for a strong development cycle to
satisfy this demand, and further opportunity
for investment. However, the risks are
numerous, the challenges are significant and the
environment often unchartered territory for real
estate developers.
I was fortunate to spend a large part of
my career in China, witnessing a real estate
development boom previously unseen in the
world. Literally millions upon millions of square
metres of