A conversation about property, capital and the South African market with one of the country's most respected property investors. On cycles, conviction, the art of the deal, and why the best property decisions are made before the property search begins.
The Real Estate & Wine series was conceived around a simple premise: the most honest conversations about property happen away from the boardroom. Over a good bottle, with the formalities set aside, people say what they actually think.
Our first conversation is with a property investor who has been active in the South African market for over two decades. He has acquired and disposed of assets across every cycle, built and sold developments, and watched the market from a perspective that few possess. He asked not to be named. We agreed.
"The thing about property," he says, settling into his chair, "is that everyone thinks they understand it. Because everyone has lived somewhere. But living somewhere and understanding property as a capital asset are completely different things."
“The investors who have done well in this market are the ones who understood that property is a business. It requires the same rigour, the same discipline, the same willingness to walk away from a bad deal.”
"The investors who have done well in this market — consistently, over time — are the ones who understood that property is a business. It requires the same rigour, the same discipline, the same willingness to walk away from a bad deal that any other business requires. The ones who treated it as a lifestyle choice, or as a way to park money, have generally done less well."
We ask about the current market. He pauses. "It's interesting. There's a lot of noise about interest rates, about emigration, about the economy. And some of that noise is legitimate. But underneath the noise, there are very good assets available at very reasonable prices. The buyers who are paying attention are finding them."
"The mistake most people make right now is waiting. Waiting for rates to fall. Waiting for the election cycle to resolve. Waiting for certainty. But certainty is not a feature of property markets. It never has been. The people who wait for certainty are the people who miss the cycle."
“Certainty is not a feature of property markets. It never has been. The people who wait for certainty are the people who miss the cycle.”
We ask what he looks for in an acquisition. "Three things. Location that cannot be replicated. A price that reflects reality, not aspiration. And a clear path to value creation — whether that's through development, through renovation, through repositioning, or simply through time."
"The wine," he says, lifting his glass, "is a Stellenbosch Cabernet. 2019. It needed time. Most good things do."
Key Figures
The Business of Property, Uncorked
Series tagline
Candid conversation
Format
3 non-negotiables
Acquisition criteria
