Its aim is to maintain a reliable supply pipeline of land for around R10bn in property developments.

Land Equity Investments Ltd will probably list once its land assets reach R1bn. This implies an initial development pipeline of about R8bn. The company will also do an empowerment deal at that stage with a strategic partner.

“Chait has already started buying land in places we think will be primary property development areas,” says Sasfin Bank CEO Roland Sassoon. “This includes Gauteng and other urban areas, but also newly densifying nodes that a few years ago were considered rural. The company will appoint a CEO in a matter of weeks so that Chait, the largest individual shareholder, is freed to concentrate on dealmaking.”

Chait says most developers have neither the capital nor time to buy raw land and take it through the slow process of gaining commercial or residential land use rights from local authorities. High interest rates and Eskom electricity supply constraints are adding to their problem.”

“The market is currently being flooded with land even by some large developers,” he adds. “But Land Equity Investments has raised patient capital that can give the property the necessary time to be turned into its optimum use. And we don’t intend trading the land for profit.

“Once a property has been given rights and the local environment is ripe for development, the company’s shareholders will form strategic partnerships to create investment properties. These, in turn, will be bundled into property funds to give long term income to the investors.”

Chait, currently CEO of Cape-based Property Partners, says Land Equity Investments will initially buy some already-zoned land to meet immediate needs for developments. But its main focus will be only establishing a land development pipeline.

Chait (39) was a founder of SA’s first mixed-use property developer Newport, in the mid 1990s, BEE developer Mvelaphanda properties in 2001 and launched Property Partners in 2002 to provide mezzanine and equity finance for developers. Its major investment to date has been Melrose Arch, which it bought from Sentinel Mines Pension Fund in December 2005 for R1,3bn and which after additional investment is now worth around R3,5bn.

Chait in partnership with businesswomen Wendy Luhabe was the second highest bidder for the V&A Waterfront last year, outbid by a joint venture between UK’s London and Regional Properties and Dubai World.

"Everybody is currently focussing on the slow down in economic activity," says Chait. "But we mustn't lose sight of the property fundamentals. South Africa is in a long term recovery and we’re already seeing the lowest property vacancy levels in over 40 years, and the lowest availability of zoned land since anyone can remember. It'll get worse before it gets better and -- as always -- we move into oversupply. Land Equity Investments is a response to that environment, to smooth out the booms and busts and provide consistent, strategically tuned supply."