De Waldorf Lifestyle and Retirement Estate, Stellenbosch
A HEALTHY INVESTMENT OPTION
New-look medical real estate developments offer investors a profitable alternative, writes SAMANTHA BARNES
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nvestors in medical real estate developments are looking at new ways to incorporate healthcare facilities into communities and reap the benefits of the sector’s stability and growth that is driven by an increasingly high demand for medical care. While the need for expert medical care is a given, investors in hospitals, day facilities, specialist care and frail care centres are adopting a fresh approach.
INVESTING IN SUB-SAHARAN AFRICA Sub-Saharan Africa continues to be a viable proposition for both large and small investors. By SAMANTHA BARNES
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omentum Africa Real Estate Fund (MAREF) has multiple pipeline projects across its targeted countries while Emerging Africa Infrastructure Fund (EAIF) mobilises private capital to support economic development in Africa. MAREF describes itself as a conservative investor. “We aim to mitigate a significant amount of risk before investing,” says David Lashbrook, director and fund manager at MAREF. “MAREF can only present an investment for approval when we have legally binding lease commitments for at least 60 per cent of a development. Additionally, all developments are completed by our sister company and dedicated developer, Eris Properties, which has delivered more than 120 developments in Africa over 30 years.” Target countries are Cote d’ Ivoire, Ghana, Kenya, Nigeria, Mozambique, Rwanda,
F IN A NCE
“A shared vision is extremely important to our company’s success,” says Dirk Engelbrecht, CEO of Safari Investments, “and a clear and proper strategy to ensure that assets perform well under economic pressure.” These elements are a lot to deliver on, but achievable. The Soweto Day Hospital project is the only medical facility in Safari’s portfolio of nine commercial properties. Advanced Health handled the concept and design of the hospital with Safari Investments responsible for acquisition. “With part of our strategy involving property investment in low LSM peri-urban areas, we believe medical facilities can, ultimately, be a value-added service,” says Engelbrecht. “Our market relies heavily on public transport. “A one-stop destination for service offerings, such as shopping, offices, medical care facilities, health clubs and libraries, significantly strengthens our nodes and supports our communities’ needs. “Soweto Day Hospital provides stateof-the-art medical facilities, including a specialised opthamology facility, in a previously disadvantaged area and contributes to the provision of advanced healthcare to the community,” explains Engelbrecht.
De Waldorf Lifestyle and Retirement Estate in Stellenbosch is the brainchild of the HDK Property Group. The project is breaking the mould in terms of integrating community with medical care and differentiates De Waldorf from other lifestyle estates on the market in the area. “By including medical facilities, we ensure that once residents move to De Waldorf Lifestyle Estate they never have to move again,” says Pieter Horn, managing director of HDK Property Group. “Medical services – for a wide array of needs – are not restricted to the medical centre itself and can be provided in residents’ homes.” Once complete, De Waldorf will include a frail care centre, memory care clinic, assisted living apartments and assisted living care packages, all managed by medical services provider, Medwell SA. Assisted living facilities are planned for Durbanville, Strand, Paarl and Wellington. “COVID-19 has shown us that health, safety and medical care is of the utmost importance,” Soweto Day Hospital explains Horn.
Uganda, Tanzania and Mauritius. MAREF will also consider projects with strong tenant agreements in other countries. “We invest in and develop Grade A commercial real estate,” says Lashbrook, “including offices, logistics, light industrial, healthcare and student accommodation in sub-Saharan Africa, excluding South Africa.” Flagship properties include Omicane’s head office in the Mon Tresor Business Gateway. Omnicane produces 40 per cent of Mauritius’s sugar cane and one-third of the island’s power. Mon Tresor Business Gateway was Winner of the Best Green Building in Africa at the 2019 API Awards.
to support economic development in Africa by mobilising private sector capital to fund infrastructure. New infrastructure usually lifts economic activity and over time should help to improve asset values in property,” explains Kroos. The fund’s projects are diverse and include an affordable housing project in Kenya. “Our first property transaction was in Kenya in 2019. We backed a bond note issue to finance the building of green, safe, and affordable accommodation for 5 000 students,” Kroos says. EAIF has supported over 20 renewable energy projects and currently has clients that are building a hydro project between Uganda and Tanzania, a solar plant in Mozambique, and another hydro project in Cameroon. “As a well-capitalised public-private partnership, EAIF has a two-decade track record of success,” says Kroos. “The loan book is currently over $1-billion, so we are a significant presence in African infrastructure project finance.”
FUNDING INFRASTRUCTURE FOR ECONOMIC GROWTH “As a debt fund supporting private sector infrastructure projects we are what is known as a ‘patient lender’,” says Martijn Kroos, director at Ninety One, which manages the EAIF. EAIF has an established presence in 18 African countries. “Our primary role is
DID YOU KNOW?
Agahoza Shalom Youth Village, Rwanda
The 8.5MW solar power plant at Agahozo Shalom Youth Village in Rwanda was developed by Gigawatt Global and was EAIF’s first solar project. Completed in 2015, it was financed, built and operational in just over a year and supplies the equivalent of 15 000 homes.
COMMERCIAL PROPERTY
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