»
Oct 24, 2007:
SOUTH African property funds will have a greater international exposure in the future and there is a possibility of an African property fund that spans the continent, says property economist Francois Viruly.
Viruly, who is a professor at the University of the Witwatersrand’s School of Construction Economics and Management, says SA’s property funds are becoming larger and attracting greater investor interest.
“On the other hand, domestic funds are finding it more and more difficult to get the necessary investments in SA,” he says.
These issues will be raised at next month’s fifth annual property investment conference, hosted by commercial property association Sapoa and the Investment Property Databank.
The conference, to be held November 14-16 at the Cape Town International Convention Centre, will focus on how, thanks to exceptional returns posted by SA’s listed property sector in the past few years, there are expectations that the sector will see increased foreign interest, increasing capital inflows and continued strong demand.
The question that the conference aims to answer is whether SA will harness its growing reputation as a leading property investment destination for investors with an appetite for emerging markets.
Kgaogelo Mamabolo, head of unlisted property investments at Liberty Life Properties, says SA needs to undertake more marketing. “That means removing concerns about risks by selling our strong points globally.”
She says SA should extend international marketing beyond the developed world and try to attract investors from other developing countries: “They are likely to have a keener grasp and more positive perception of emerging market risks and challenges.”
Viruly says another challenge lies in ensuring that the property investment sector can continue to grow, which will require land and appropriate infrastructure.
