Real Estate Investor Magazine South Africa September 2013 | Page 59

REI Offshore

New Offices In Kenya
Responding to growing investment on the African continent, leading African professional property services provider Broll opened its new Kenya off ices in Nairobi in August. Broll Kenya will provide property services to support demand in East Africa. Broll’s new office in Kenya answers the growing needs and opportunities in the region, reports Malcolm Horne, Group CEO of Broll. “Broll has been doing business in Kenya for some time now from its South African headquarters with its international partner CBRE,” explains Horne. “As the economic hub of East Africa, with sound macroeconomic and political policy in place, Kenya is attracting multinational companies. Nairobi is proving increasingly popular for corporate head offices on the continent and in the region.”

The Figures For Botswana Are In
According to the IPD Botswana Annual Property Consultative Index, the total return for all property in Botswana was 17.9% for the year to December 2012, compared with 20.9% for 2011. This figure represents the un-geared total return to directly held standing property investments from one open market valuation to the next. The return on Botswana property comprises 11.0% income return coupled with 6.3% capital growth over the year. The underlying rental growth of 8.6% outstripped Botswana’s headline inflation rate of 7.4%, underpinning both the capital growth and income return. Industrial property outperformed other sectors with a total return of 28.4%, closely followed by residential at 24.4%.

Europe’s Retail Markets
An unprecedented 11.9 million m² of shopping centre space is currently under construction in Europe, representing a 50% increase year-onyear (7.2 million m² in 2012), according to the latest research from global property advisor CBRE. Shopping centre development activity is largely concentrated in emerging markets, with a large proportion (74%) taking place in Eastern Europe. Similar to last year, Turkey is forecast to remain the most active market with around 3.7 million m² of shopping centre space under construction. Istanbul will be the most active development market in the coming years with 37 centres currently under construction, including A xis Eyüp AV M with a Gross Leasable Area (GLA) of 150 000 m², and Yeni ?stanbul (GLA of 137 684 m²).

Valuable Input

James Ehlers, MD, Atterbury Property Developments “Developing a mall in the heart of the fastest growing urban node in Africa created the prospect for an exciting modern landmark. Mall of Africa’s sheer scale, distinctive design, exceptional location and top-notch retail mix puts it at the forefront.”
www.reimag.co.za

Mike Smuts, Director, Smuts & Taylor “The most effective way to find financial security and peace of mind is to invest some of your wealth in a stable economy with a strong currency, such as the UK.”

Stan Garrun, Executive Director, IPD “Now the Botswana property sector can provide local and global property markets with the comparative, precise and timely data they increasingly require.”

Neville Moss, Head of EMEA Retail Research, CBRE “The rapid growth of new shopping centre development in emerging international markets is attributed to a growing middle class, the urbanisation of large cities and consumer demand for better quality retail.”

Jay Padayatchi, Director, Meago Asset Managers “JSE’s offshore property players are now more attractive than local counters given the potential for further rand weakness.”

September 2013 SA Real Estate Investor

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