Real Estate Investor Magazine South Africa May 2013 | Page 71

STANLIB

ADVERTORIAL

STANLIB

Africa Direct Property Fund
creates quality

A

cross the real estate spectrum
the world over, Africa provides
some of the best risk adjusted
returns. The STANLIB Africa Property
Development Fund is targeting an Internal
Rate of Return (IRR) of 25% in dollar
terms and aims to achieve first year yields
on development costs of between 12-14%
in dollars.
“Africa is a good return play and provides
investors w ith grow th oppor t unities
not seen any where else in world at the
moment”, says STANLIB Direct Property
Investments Chief Investment Off icer,
Amelia Beattie.
The nature of propert y investments
a nd t hei r abi l it y to have a posit ive
impact on the communities they serve is
compelling, she says. The developments
will have long-felt benefits, including the
creation of a significant amount of jobs,
new communities in nodes around the
developments and new trading platforms
for retailers - making it a responsible
investment choice.
The initial focus of the Fund will be in
creating quality retail developments in
Nigeria and Kenya, with 6-8 developments
planned across both. Beattie says Lagos has a
population of 21 million who are serviced by
only two shopping centres of 25000sq m each.
In Nairobi, 1.5 m people commute
into the city every day and therefore the
opportunity exists there to build quality
retail environments on the outer skirts of the
city to help relieve the enormous burden on
the inner city where many of the shopping
nodes are currently located.
“This tells you there is a lot of opportunity
for quality retail space in areas accessible to a
vibrant population that is upwardly mobile.
Our philosophy is to have investments with
long term returns in quality real estate in

carefully chosen economically growing
nodes. We want to build quality, sustainable
investments that stand the test of time. Our
direct involvement means we can vouch for
the quality of the buildings and that the
income stream remains relevant over the
long term.”
Beattie says two things are ‘sacrosanct’
in their development process: the choice of
engineers and quantity surveyors: to keep
the buildings safe; and ensure money is spent
on the right quality construction inputs
to provide for a long lasting, sustainable
environment.
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