Real Estate Investor Magazine South Africa REIM February 2018 | Page 52

AFRICA
Underrated African Market
Exploring Botswana’s
Investment Opportunity
UMESH LOONA
Co-founder and CEO of APEX
Properties and Developments
GROWTH IN BOTSWANA
According to the Global Property Guide, yields
of between 6.5% and 9.5% can be expected on
residential property in Gaborone and Francistown.
This is supported by recent research conducted by
the Centre for Affordable Housing Finance in Africa
(CAHF), which shows that rental properties in the
city centre currently offer high gross rental yields
of 7.9%. Outside of the city centre, rental yields of
about 5.5% are expected.
The Africa Investment Index 2016 ranks Botswana
as the most attractive investment destination in
Africa, due to an improved credit rating, favourable
current account ratio, import cover, and ease of
doing business.
Foreign investors are welcome in Botswana, with
only tribal and state land being off limits. Buying
costs are also relatively low, between 6 and 8% of
the property value.
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FEBRUARY 2018 SA Real Estate Investor Magazine
I
n 2004, Umesh Loona founded Apex Properties in Ga-
borone, Botswana. Having arrived in the country in 1998,
Umesh had come to realise that the area held great po-
tential for property investors. As he puts it: “Where there is
a problem, there is a business.” The Gaborone market is an
interesting one, with many examples of growth. Not one to
sit back, Umesh has often been the driving force behind this
growth, as his recent residential development proves: “We’re
building and funding the roads. There’s an infrastructure prob-
lem, so we’re fixing it.”
Having qualified as an accountant in his native India,
Umesh initially started an accounting firm in Gaborone. This
background, he explains, helped him to move the property
business to a new level. Two years after moving into real estate,
he decided to try his own hand at property investing. But it
didn’t all go as planned. They struggled, initially, to get a loan
approved - It took eight months to get that done. There were
many unexpected expenses but, Umesh explains, they learned
a lot about property and investing in the process.
“With property development, it looks easy, but you need to
know your facts. There can be a lot of hidden costs and timing
problems. Property is not a get rich fast scheme. It takes a long
term commitment and patience. But the beauty of property is
that it also builds you up as an individual,” he explains. This
drive and determination is palpable when speaking to Umesh.
It’s also clear when he describes his goals for the company.
He’s planning to expand Apex Properties into the rest of
Southern Africa and, eventually, would like to list the com-
pany on the stock exchange. A key component of this, Umesh
explains, is investing more money into infrastructure: “If we
can do it for our clients, we can do it for ourselves. There are
challenges in the local market, but they can be overcome with
enough hard work.”
In 2006, Apex Developments was founded with the sole
purpose of investing in and developing property. Umesh is
currently working to launch Apex Next Limited, to be listed
on the Botswana Stock Exchange, and focusing on buying and
managing properties under financial stress.
Apex Properties offers a full range of services to clients,
including property management, property valuations, broker-
ing, advisory services, as well as development and investment
innovation. Umesh makes it clear that he and his company
do all it takes to achieve success for their clients: “I live by the
Philosophy that you need to fight for what you want. Nothing
is built over night, but as long as you are committed to your
goals, you will get there.”