Real Estate Investor March 2022 | Page 60

Industrial Sector The industrial sector has proven to be the darling for developers and investors , with a particularly large degree of interest and activity around logistics . This trend is likely to have legs in the longer term , but the question is whether assets have already priced this in .
Student Accommodation Student accommodation has been significantly impacted by Covid-19 from a cash flow perspective . This is generally regarded to be temporary in nature , with a shortage of supply expected over the longer term . Again , there is keen interest in this sector , with parties investing resources in the development of innovative approaches to address supply shortages .
Convenience , Rural & Township Convenience , rural and township retail have generally proven resilient through the pandemic , with a fair amount of activity around , and investor interest in , these assets being evident .
Environmental , Social & Governance The environmental , social and governance ( ESG ) theme has picked up steam over the course of 2021 . From an investor point of view , ESG-investing is a growing topic of interest for board members and trustees who want to see the impact that their funds are having on society .
There is a general consensus that this is a fast-growing area that will become increasingly important , particularly given the acceleration of regulation and shareholder activism in the space . In addition , savings and supplemented property revenue are increasingly being seen from innovative funding and energy-saving installation structures .
In December 2021 , Nedbank CIB , in partnership with the IFC , announced the successful structuring and arrangement of a R1,09 billion Green Residential Development Bond for Nedbank Limited issued under its domestic medium-term note programme and listed on the Sustainability Segment of the JSE on 10 December 2021 .
This innovative instrument was a first of its kind for a commercial bank in Africa . Also noteworthy in this space is that the Minister of the Department of Mineral Resources and Energy has introduced new regulations on Energy Performance Certificates for buildings in South Africa in December 2020 . These regulations require certain privately owned buildings and governmentowned buildings to obtain an Energy Performance Certificate before December 2022 .
Digitisation Digitisation is also gaining momentum in the property market . For example , online marketing and sales of residential properties picked up in spectacular fashion since lockdown regulations were announced in March 2020 .
58 MARCH 2022 SA Real Estate Investor Magazine