The growth and opportunity displayed by a diverse spread of International funds, DFIs, Banks, PE firms, institutional investors and others is evidence that despite apparent indifference to African opportunities, the continent’s real estate sector has evolved, and become increasingly more liquid and provides value in key nodes and sectors.
“In the first two quarters of 2019, we’ve tracked ten significant transactions in excess of more than a half a billion dollars across multiple jurisdictions and sectors by API Summit stakeholders,” said Kfir Rusin of Africa Property Investment Summit.
“The market has moved forward in the past six months, and we’re thrilled that so many major deal makers will be at the API Summit to transact and share their experiences with our delegates,” he said.
These high value transactions, while not a repudiation of the South African listed sector’s muted view of the African opportunity, do provide a compelling narrative that the continent’s property markets are investable, but require nuance and insights. Rusin added that it’s not simply a copy and paste job where what has worked in South Africa will work elsewhere in the continent.
According to noted real estate analyst Craig Smith of Anchor Stockbrokers, Africa’s top markets are “definitely a more attractive entry point than 18-24 months ago” but cautions that investors still need to exercise a “higher level of diligence” when investing.
Smith says the transaction spread by API Summit’s investors point to a market that is expanding, which is in line with his view that the “the opportunity set over the long-term is immense.”
Meanwhile API’s have observed an increase in diversity and complexity in these deals, “We’re witnessing sophisticated deal structuring in Affordable Housing; Hospitality; Logistics; Office spaces and Mixed use, across countries and regions,” says Rusin.
The 10th annual Africa Property Investment (API) Summit will take place on October 2nd and 3rd in Johannesburg.