Following the recent widely publicized purchase of the V & A Waterfront by the prestigious Nakheel Group, international interest in substantial commercial property investments within South Africa has increased.

This is according to property investment experts, Bales Delaporte who have been approached by a number of international investors following the V&A purchase.

“In the past we have seen a continued low level interest, but recently, international investors appear to have acquired a sense of seriousness that shows that the Nakheel Hotels & Resorts deal is not a once-off,” says Guy de la Porte.

“Interest is coming in from a variety of countries and the requests span various different types of property investments.  The investors are generally fairly serious players, from private individuals to large corporates and listed entities, including large international hedge funds.”

South African property is generally seen to be reasonably priced as well as offering yields well above those in developed countries. According to de la Porte, as investors get to know the SA market better, they are realizing there is continued stability and an advanced level of sophistication.

“This time last year, the JSE listed property sector were generally the major players in the market.  Now with increased interest rates, active local private equity funds and this renewed international interest, the local JSE listed sector has been caught off-guard and have recently lost a variety of deals.”

Bales Delaporte say that they are anticipating 2007 to be a year where a large number of new players enter the market, both from local and international sources. 

Issued by: Catherine Pate

082 922 1737
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On behalf of: Bales Delaporte

Contact: Tony Bales
083 675 3773