Real Estate Investor Magazine South Africa May/June 2015 | Page 47

buy-in since they are responsible for bringing the feet
into the development through their transport business.
This led to a seamless ecosystem whereby the retail
development has benefited substantially out of the
transport business of the taxi associations.
The mall was self-financed by Tebogo through
equity funding while he secured bank finance for the
remaining debt. The Pan Africa Mall has proved to be
a great success for tenants, consumers, community and
investors alike with prime anchor tenants such as Pick
‘n Pay, Edcon Group and McDonald’s. It has already
increased the size of the Gross Letting Area (GLA) to
25,000m2 in 2012 to attract more high profile tenants
such as Truworths and Mr. Price. Foot traffic and trade
densities have been some of the highest recorded in
South Africa to date.
Lessons learned
His first big lesson was getting community buy-in as he
found that key stakeholder engagement breed’s success
in development in emerging economies. Secondly, he
had to convince tenants and the banks that this will
be a viable project for a newbie developer. Lastly he
had to get the right contractor. Normally this kind of
project will be ideal for the larger first tier construction
companies but all the big companies were tied up on
World Cup stadium projects at the time. He eventually
appointed a medium-sized construction firm called
Adamson and Neilson.
Tebogo differentiates himself by not just investing
and developing in commoditized properties but rather
targeting property that serves the greater community
in multiple areas.
Future projects
Tebogo also owns sectional title offices in Sandton
and has a small portfolio of properties offshore in
Switzerland.
Student accommodation at the right price is on his
radar screen in both Johannesburg and Pretoria. Other
new opportunities include the affordable housing space
and urban renewable dwellings in strategic Central
Business District areas dealing with housing shortages
in the rental market.
www.reimag.co.za

Tebogo is looking at options in Africa but is very
selective as to where he wants to grow. He is searching
for land to develop and already owns 1600 hectares of
land in Angola and Democratic Republic of Congo.
The plans are to develop for the local market to serve
a real need.
He continues to follow his passion in life to respond
to the needs of society, be it in the retail, commercial or
housing space.

TEBOGO’S 10 BASIC INVESTMENT TIPS:
1)
2)
3)
4)
5)
6)
7)
8)

Pick the right site, the money will soon follow.
Make sure the development is tenant driven.
Set the gearing levels to optimal levels.
Mobilize institutional investors for guaranteed off-take.
Manage your own properties.
Maximize income streams through non rental income.
Build direct relationships with your tenants.
Maintain adequate maintenance reserves through the life
cycle of the investment.
9) Consider listing at the right time.
10) Go green wherever possible.

RESOURCES
Talis Ho