Investment in South African real estate and the outbound flow of capital from the region in to Europe was the subject of a recent discussion convened by the (ULI) and the South African Chamber of Commerce.

Professor Francois Viruly gave an opening keynote presentation on the real estate industry in South Africa. Professor Viruly is a leading property economist in South Africa; he is an associate professor at the University of Cape Town where he also heads the UCT/Nedbank Urban Real Estate Research Unit and has over twenty years of experience in the fields of Property Economics, Property Investment and Property Finance. He explained that against a backdrop of social challenges and political instability, the property market in South Africa had experienced cyclical growth with property booms in the 1960s, 1980s and 2000s.  The booms were not just a reflection of GDP but a result of structural changes including industrialisation, decentralisation and economic success.  Looking ahead to the next boom, Professor Viruly predicted transport and connectivity will be the key driver and cities that understand and achieve good connectivity will do well.

Yields in the region are fairly consistent and are sitting at around 8-8.5% while a levelling of vacancy rates is being seen in the CBDs.   However, within the office market as a whole vacancies are on the rise which is cause for some concern.

Professor Viruly saw demographics and a lack of understanding of the end users of real estate as challenges for the industry.  Population in Johannesburg is expected to rise by 10 million people by the year 2040 and increased densification will be needed.  There is also a rise in the lower middle class entering the property market and the industry needs to adjust to these new users.

Due to a lack of stock and pricing levels, South African investors are looking for opportunities outside Africa, particularly in Central & Eastern Europe.   They are also looking to the alternative sectors to achieve better investment returns such as housing, self-storage and leisure – a trend that is also being experienced across Europe and noted in the recently launched ULI/PwC Emerging Trends in Real Estate Europe 2017 report.

Professor Viruly also highlighted STEEP in considering the future of the South African property sector and what the big influences will be. This stands for social, technological, economic, environmental and political trends which all need to be considered and evaluated when looking to understand the current state of a market, as well as where it could be headed.

A panel of experts, expertly moderated by Jon Zehner, ULI Europe Chairman and Global Co-Head of Client Capital Group, LaSalle Investment Management, debated the issues introduced by Professor Viruly and gave their insights in to opportunities in the region.

John O’Driscoll, Head of M&A, JLL shared his experience with a focus on capital coming out of the region.  Incoming investors remain nervous – economic instability, credit ratings, political instability, corruption and the weakness of the Rand make it hard for internationals to commit to investing.  All the panellists agreed, however, that South Africa has a professional and well developed financial infrastructure, which can effectively support international investment.

Due to the sophistication of the property community in South Africa the REIT market is strong.  South African REITs are income focused and are therefore looking to markets that can deliver returns for shareholders.  There has been considerable focus on Central & Eastern Europe in the last 12-18 months, due to decent yield premiums from this emerging market.  Previously,the UK has also  featured strongly on the South African property investor rader.

John reported that the South African REITs are yielding 7.5-8% but that they will need to grow those yields to make the valuations work.  He flagged that “one of the biggest challenges of investing in Europe is getting increases in yield”.

Rebecca Patton, Head of Investor Relations, Hammerson was asked why Hammerson decided to list on the Johannesburg Stock Exchange (JSE).  Rebecca explained that Hammerson has a global register and as such an obligation to look to identify new capital.  The company didn’t, at the time, have many South African investors and a roadshow opened their eyes to the potential capital markets in the region.  This coupled with the rising middle classes, sophisticated fund management system and the experience of South African REITs achieving liquid and income returns, facilitated their decision to list.  They also saw a gap in the South African market for greater diversification of listed companies.  So, has the listing been a success?  Rebecca reported that there has been “plenty” of interest since listing on 1^st September 2016 with 7% of the register on the Johannesburg Stock Exchange.

In response to the question of whether there are also good opportunities in the rest of Africa, audience member, David Morley, Partner and Head of Real Estate at Actis said that the 5-7 year outlook is good.  Growth will be seen, particularly in gateway cities, due to the changes in demographics.  “Those who select and execute well will make money” David predicted.

The discussion concluded that, despite the challenges South Africa faces, the levels of professionalism and sophistication within the general investment industry and in the property sector itself are very strong and set the bar for many developed countries.

Please join us!

DATE: Thursday 27 October 2016
VENUE: South Africa House, Trafalgar Square
London WC2N 5DP
TIME: 18.30-21:00

Click HERE to RSVP. Please RSVP before 26 October. Space is limited.

The South African Chamber of Commerce (SACC) was very pleased to attend the Khulisa Global Mentorship Movement (KGMM) Presentation on 1 November which was kindly hosted by Old Mututal.

This exciting new initiative by Khulisa Social Solutions, a very successful South African social change NGO with a strong presence in the UK, allows global South Africans to become mentors to individuals from disadvantaged communities in South Africa. Khulisa’s approach focuses on providing the support network which so many people do not have in their lives, and which is essential to overcome challenges of poverty and difficult family conditions which perpetuate the cycle and leave many trapped. By the wonders of technology, a person in London can sign up, and after a screening process, be matched to an individual in South Africa to whom they provide advice, support and most importantly a person who will listen to their story. Only 2 to 3 hours a month is needed.

The evening itself was energetic, informative and fun. The wonderful Pumela Salela of Brand South Africa provided a warm welcome and the inspirational founder of Khulisa, Lesleyann van Selm told the audience about her beginnings and how Khulisa has managed to achieve the success and multiple awards its has. The iconic PJ Powers who is the global ambassador for the KGMMt proved she is the perfect person for the role and delighted and inspired the audience with her story and how she first burst onto the scene in South African music by doing a show to 30,000 people in Soweto during the 80s in South Africa, a tremendous feat for many reasons. The story of her journey and her amazing energy delighted everyone, and we were even treated to an impromtu rendition of Jabulani and Shosholoza.

It was a fantastic evening to launch a truly amazing initiative which can directly change the lives of many who face enormous challenges to build a better life for themselves and their family.

For more information on how to get involved and/or how to donate please visit Khulisa’s website at the below link:

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All from the SA Chamber table at the LIV Village gala banquet at SA House on Thursday 1 September 2016:
(L to R) Rob Clark, Charles Perry, Melissa Powys-Rodrigues, Richard Swart, John Battersby and Philip Sykes.

Photo by Simon Lewis

Calling all South Africans in London and surrounds! Join us as we celebrate South Africa’s culture and diversity with our fellow countrymen and enjoy the last days of summer with a lekker bring & braai.

Everyone is welcome! We have received permission to gather in Wimbledon park and braai together on Saturday, 24th September. The event is a bring & braai picnic. So bring along your braai packs, picnic baskets, snacks, drinks and anything else you think you’ll need for a day out in the park.

Please wear anything SOUTH AFRICAN 🙂

Disposable braai backs are available from the Savanna Southfields SA shop at 281 Wimbledon Park Road (not too far from the park, tel.:+44 208 780 3727) or from the Sainsbury’s across the road.

If you would like to host a stall, do face painting, sell food, provide entertainment or organise any other activities for the day, please email [email protected] and [email protected] with your request.

Please note that this event is taking place on public property and there may be other members of the public there who are not attending the event (“third parties”). The organisers accept no responsibility for and will not be liable for any damage, loss, costs or any claims and/or expenses arising out of or in connection with the conduct of any attendees of the event or third parties.

Notice is hereby given of the Annual General Meeting of the South African Chamber of Commerce UK Ltd to be held as follows:

EVENT: SACC AGM

VENUE: Deloitte Auditorium, 2 New Street Square, London, EC4A 3BZ

DATE: Wednesday 7th September 2016

TIME: 18:30 to 19:00

DRESS: Smart or traditional

AGENDA:

1. Welcome by SACC Chair Melissa Powys-Rodrigues

a. Thank you to Board members and Sponsors

b. Chairperson’s report

c. Directors resolutions enacted during the last year

d. Introduction of CEO David Butler

2. CEO update by David Butler

3. Financial update by Treasurer Michael Miller

4. Adoption of resolution on proposed revised SACC constitution – members will be required to vote by a show of hands. All support documentation will be sent out with the final notice on 16th August 2016.

5. Election of Directors – members will be required to vote by a show of hands. The following directors are standing for re-election:

i. Melissa Powys-Rodrigues (current Chair)

ii. David Butler (current CEO)

iii. Michael Miller (current Treasurer)

iv. John Battersby

v. Chantele Carrington

vi. Sharon Constancon

vii. Carol Freeman

viii. Masechaba Mashigo

6. Election of Executive Committee members. The current Executive committee members are as follows:

i. Jaco van Zyl

ii. Simon Goedhals

iii. Sam Finnemore

iv. Sean Godoy

v. Francis West

7. Any other business. Only items with supporting documentation and approved by the directors can be included in the agenda. Such items to be submitted by close of business on Thursday 11th August 2016

Notes:

1. Please note that only paid up members of good standing will be allowed to attend the AGM and vote on resolutions and election of office bearers.

2. The final notice of the meeting, final agenda and supporting documentation will be sent to all members on Tuesday 16th August, twenty one days before the AGM in line with the requirement to do so as laid out in the SACC constitution.

3. Any proposed additions to the agenda must be received with supporting documentation by close of business on Friday 12th August 2016. The directors will then decide whether to include any proposed additional item on the agenda by a majority vote.

Chamber Connects:

The AGM will be followed by a Chamber Connects presentation and networking with canapes and drinks supplied by Deloitte.

The South African Chamber of Commerce was extremely pleased to host the South African cricketing legend Gary Kirsten on the 27th of July. Gary exceeded expectations and really wowed the crowd with his humble and insightful account of his time as a record-breaking cricketer and world cup-winning coach for India. We received very positive feedback from those who attended and all thoroughly enjoyed the evening.

We all took home some pearls of wisdom regarding leadership, self-reflection and of course the current state of South African cricket. We would like to take this opportunity to thank Gary and his PR manager Russel Symcox for working with the South African Chamber of Commerce to make the evening a reality. Gary also gave a heart-warming account of his Cricket Foundation which is doing sterling work in bringing cricket to underprivileged communities in Cape Town. With our help his good work and spread further in South Africa and make a real difference in even more children’s lives. Details on the foundation and how to donate can be found here: www.garykirsten.com/gary–kirsten–foundation

Yours in cricket,
Sean Godoy

Last week over 60 South Africans and those who love South Africa gathered in the City of London for the South African Chamber of Commerce’s Summer Drinks event.

Hosted by Nedbank on the roof terrace of the Old Mutual building overlooking the Thames, good weather and some sunshine meant that guests we able to enjoy breath-taking views of London while feasting on an assortment of delicious canapés and plenty of  wine.

One of the highlights of the Chamber’s calendar, the annual Summer Drinks provides members with an opportunity to network, make business contacts, and catch up with old friends.

This year was no exception.

Invitation to the launch of the Khulisa Global Mentorship Movement for SACC Members

Hosted Brand SA, in association with the South African High Commission and the South African Chamber of Commerce, Khulisa Social Solutions, and Khulisa UK, invite you to attend the launch of the
Khulisa Global Mentorship Movement.

Be a part of South-Africa’s first long-distance, cross-cultural mentorship platform.

South Africans abroad often ask how they can contribute to nation-building, and to improve the education system back in South Africa.

Now there is a flexible, easy and sustainable way for members of the South African Diaspora to make an immediate contribution to the quality of education and training in a two-way exchange between those living abroad, and those studying at home. 

Become a mentor for just two hours per month, and Khulisa will match you with a mentee whose development needs are aligned to your skills, experience, interest and passion. Learn how to mentor, and gain skills that will be valuable to your future life and career.

Keynote Speaker – Salome Fenyane
Khulisa’s Global Mentorship Movement leader. A recognized public speaker, inspirational storyteller, author and mentor.

Date: 16th June 2016
Time: 18h30 – 21h00
Place: South Africa House, Trafalgar Square, London WC2N 5DP
RSVP: Before 13th June.

Space is limited.
Click HERE to RSVP

Khulisa Social Solutions, established in 1997 as a Non-Profit Organisation focusing on sustainable development, community engagement and social engineering, and Khulisa UK, a key player in the Criminal Justice Sector.