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Key speakers at Investment Property Databank conference this week
Sub-Saharan Africa offers enticing real estate opportunities, even with risk mitigation becoming increasingly tricky across multiple jurisdictions, according to Bruce McGlogan, head of private equity and real estate fund services at the Maitland Group.
He will address the Investment Property Databank conference this week in Cape Town on this theme, as part of the overarching theme of 'Property on the Red Carpet'.
"The most standout feature of South Africa commercial real estate investment is the return on investment and overall, my message is an upbeat one," said McGlogan. "Real estate and particularly private equity real estate investment continues to grow in sub-Saharan Africa. While it may be true there are risks associated with emerging market investments, core returns in sub-Saharan Africa are comparable to opportunistic returns in developed countries. And risk is, of course, a key imperative in global real estate investments."
Key risks
In the Southern African context, he points to governance, transparency and a lack of sophistication in portfolio management, along with macroeconomic considerations, inflation and exchange rate fluctuations as general risks. "Increased regulation and legislation are key risks for the region's real estate investments," he adds.
Simon Fairchild, executive director & head of North America, IPD, who will also be speaking at the conference, points in particular to the variety of ways that investors can now access property including direct, indirect, listed, or privately held. "Over the past 20 years, we have seen real estate becoming increasingly integrated with the mainstream investment process but understanding risk is critical. All investors have a 'risk budget' when they invest and for what they get back in return. Investors also need to realise that some risks simply cannot be managed or predicted."
Other speakers bringing their insight and perspectives to the conference include economist and academic Brian Kantor; Axel Schimmelphennig, senior resident representative, International Monetary Fund; Andrew Rogers, deputy CEO, Hospitality Property Fund; and Rob Wesselo, director from International Housing Solutions.
Sponsored by Stanlib, the 11th Annual IPD Property Investment Conference will take place on 18-19 July 2013 at The Westin Grand Hotel in Cape Town. For more information, go to www.ipd.com.
