Course Feedback Company: Colliers Course: Real Estate Investment & Financial Modelling Location and date: London, 5 – 6 May, 2016 Delegates: HUW HOLMAN,

Slides:

Advertisements

Similar presentations

An Overview of the European Property Investment Markets By King Sturge.

Advertisements

Hans Timmer and Richard Newfarmer World Bank December, 2006 Global Economic Prospects, 2007 Managing the Next of Globalization.

Residential Property Investment – Is There More Upside? Malaysia As An International Real Estate Investment Destination.

Country Analysis Part 2 ElsenburgA.G. Partridge THE AFRICA AGENDA 06 November 2013.

Storybook 01: South Africa’s Economic Output STANLIB Economics.

© Nora Rothacher – ERES Maturity indicators for emerging real estate markets – Exemplified by the comparison of the Tanzanian and South African.

Way to Develop New Business in the Africa Market Jeff Ambjorn Regional Director, Middle East & Africa.

ROMANIAN REAL ESTATE MARKET WITHIN CENTRAL EASTERN EUROPE EU Accession Effects Presentation to: JW Marriott Bucharest Grand Hotel, May 4, 2004 May 4, 2004.

African market reform continues African capital markets follow the Emerging World Presentation by Des Mahony to the ASEA conference in Accra October.

1 Fiscal Federalism in Iraq: OIL and GAS. The oil situation: a snapshot.

Vendor finance Perspective of equipment manufacturer Tom Olszewski Terex Financial Services.

Lecture 3: Emerging Markets and Elements of Country Risk Analysis.

16 November8th Portoroz Business Conference Kazakhstan: The Emerging “Tiger” Economy of Central Asia R.W. Robertson, Ph.D. Director Graduate School of.

TOURISM IS THE BIGGEST INDUSTRY IN THE WORLD! BIGGER THAN AUTOMOBILES, DEFENCE, AGRO AND MANUFACTURING.

Israel Cell: Ron Manoah

Dmitry A. Revin, Director for finance and business development

Standard Bank Group Symposium on “Foreign Investment in Africa”

Investment Climate & Foreign Direct Investment in Africa

Doing Business in The East African Community 2012 Bujumbura, Burundi April 11, 2012 Alfred Ombudo K’Ombudo Coordinator, EAC Investment Climate Program.

Doing Business in the East African Community 2013 Alfred Ombudo K’Ombudo Coordinator, EAC Common Market Diagnostics World Bank Group 2 May 2013 Kigali.

HOW GHANA HAS IMPROVED ITS EASE OF DOING BUSINESS INDICATORS Mawuena Trebarh (Mrs.) – Chief Executive Officer Ghana Investment Promotion Centre, gipcghana.com.

1 Chapter 1: Outline 1. Three Vignettes (3 contrasting stories about livelihood change in …. A. Malaysia B. Ethiopia C. Ukraine D. Development & Globalization.

African Development Bank Group

Elsenburg Louw Pienaar COUNTRY ANALYSIS PART I: TRADE INTO AFRICA.

KEY DEMOGRAPHICS AsiaEurope (25 countries) USA 3,800 million455 million291 million 42 million km²4 million km²9 million km² US$ 4,969US$ 23,600US$ 36,300.

Scott Featherston 17 November, 2010 Lowy Institute, Sydney, Australia

RECENT WORLDWIDE ACCLAIM “Prudent fiscal policies ” World Bank 2014 “ Remains an excellent opportunity for investment” McKinsey “ An economy driven by.

Objectives A. Understand the case for global investing B. Understand the key issues in global investing.

Outlook for developing country growth improved considerably in the last six months Outlook for developing country growth improved considerably in the last.

AFRICA MUST TRY HARDER NOVEMBER 2014.

Kenya: an opportunity Jeff Gable UK/ Kenya Trade & Investment Forum 3 rd December 2013.

Impact of Sustainability Attributes on the Performance of Prime Office Market in the National Capital Region of Delhi Paper presented at 17 th European.

1 Simple View of Exchange Rate Determination. 2 EUR exchange rate against the dollar: EUR value in USD.

Terry McKinley and Giovanni Cozzi Centre for Development Policy and Research (CDPR) School of Oriental and African Studies (SOAS) University of London.

Global Economic Issues Gregory W. Stutes. Global Village Do we live in a global village? – Do events around the world affect us as quickly as if they.

Competition Policy and Economic Development by Rughvir (Shyam) Khemani Advisor, Competition Policy Financial and Private Sector Development Vice-Presidency.

Presentation on the Greek Real Estate Investment Market New York Monday 30th October 2000.

Africa’s Rising Consumer Class What are the opportunities? Soula Proxenos – International Housing Solutions

Economics Chapter 18 Economic Development

NS4301 Summer 2015 Africa’s Private Sector. Overview While Africa’s economies have improved recently Still a large lag in terms of: Long-term growth Structural.

African Business Outlook Part of the Global Business Outlook A joint survey effort between Duke University, The South African Institute of Chartered Accountants.

Regional Challenges Latin America and the Caribbean THE WORLD BANK 2007.

Middle East and North Africa Regional Economic Outlook November 2015.

A modern term used to describe the changes in societies and the world economy that result from dramatically increased international trade and cultural.

Sub-Saharan Africa: Investors' final frontier René Awambeng, Head of Global Corporates Dr Edward George, Head of Group Research Prague, December 2015.

23 April 2009 UNECA Léonce Ndikumana Director, Research Department African Development Bank Africa and the global crisis: will growth hold? Africa Forum,

Warm Up What do you think causes the economies of some less developed nations to grow rapidly?

SUB-SAHARAN AFRICA - “LET THERE BE LIGHT”. Population: 183m – in 5 Africans is Nigerian GDP: $594bn – 2014 $521bn – 2013 GDP growth:Q – 6.21.

Kuwait Construction Industry Slated to Prosper Expected to Slow Down Due to Uncertain Business Environment.

ACEC: U.S. African Initiatives Session Jim Wilson – Senior Coordinator for Trade Promotion U.S. Department of State Grand Hyatt Hotel – April 30, 2014.

© 2006 Prentice Hall Business Publishing The Economic Way of Thinking, 11/e Heyne/Boettke/Prychitko “The Economic Way of Thinking” 11 th Edition Chapter.

PERU: STATE OF THE HOUSING INDUSTRY IHA Secretariat.

The Changing Wealth of Nations Measuring Sustainable Development in the New Millennium Kirk Hamilton Development Research Group The World Bank.

INVESTMENT OPPORTUNITIES IN ROMANIA MAY ROMANIA Key figures Population: 20,1 mil citizens GDP:166 bil Euros* GDP Growth, 2015:3,8%, second in Europe.

International Monetary Fund, Regional Economic Outlook for Sub-Saharan Africa, June Time for a Policy Reset Regional Economic Outlook for Sub-Saharan.

World Offshore Maintenance, Modifications & Operations Market Forecast World Offshore Maintenance, Modifications & Operations Market Forecast.

1. Low living standards 2. Low levels of labour productivity 3. High rate of population growth 4. Economic structure dominated by primary sector production.

Growing Economies 4.1 Globalisation.

Home Textiles: Global Drivers of Demand and Future Outlook

by Dr. Bekithemba Mpofu PhD MBA MSc BSc FCMI CBIFM

African Business Outlook Part of the Global Business Outlook

National Technical University of Athens

TIPS TO INVEST IN COMMERCIAL PROPERTY. INTRODUCTION IN INDIA, THE REAL ESTATE HAS ALWAYS BEEN LUCRATIVE AND FAVOURABLE INVESTMENT OPTION. HIGH GROWTH.

African Business Outlook

Potentials for Nigeria’s Mortgage Market

Global Economic Prospects, 2007

International Real Estate Market Analysis

Reasons for Privatization

GLOBAL CHANNEL TRENDS, 2013 Shifting patterns in regional channel growth LOUISE HOWARTH May 2013 Senior Retail Analyst.

Presentation transcript:

Course Feedback Company: Colliers Course: Real Estate Investment & Financial Modelling Location and date: London, 5 – 6 May, 2016 Delegates: HUW HOLMAN, Senior Surveyor TOM SODZAWICZNY, Graduate Surveyor MATTHEW BEECH, Analyst Co Real estate in Sub-Saharan Africa for the first-time investor European Real Estate Society 2016 Regensburg, 9 June 2016

Co Content Investment case for Sub-Saharan Africa Private real estate investment opportunities Office & retail rents Underlying real estate investment risks

Co Investment case for Sub-Saharan Africa The rise of middle class GDP per capita in Sub-Saharan Africa – SSA – ( 1960 – 2014) Source: Global Economic Prospects, World Bank

Co The rise of middle class Pace of GDP per capita growth in SSA compared to world growth ( ) Source: Global Economic Prospects, World Bank. Indexed by researcher

Co GDP growth forecast Source: World Bank Forecast, June 2015 SSA GDP growth forecast

Co Private real estate investment opportunities Source: African Development Bank Group, Dec Residential pressure -33% urban population (lowest in rate in Africa) -65% of SSA’s urban population live in slum condition -Only 20% of SSA’s population has access to electricity -60% of African citizens live in places where water supplies and sanitation are inadequate (potable water and sanitation)

Co Unmet prime office demand – oil & gas companies driving up rental prices Source: Colliers International and Knight Frank

Co Retail property investment Lack of modern trade outlets Kenya: traditional trade (street vendors & open markets) – 70% Ghana: 96%, Nigeria: 98% Shopping malls are a new trend International retailers: Shroprite, Woolworths and Carrefour have entered the market over the past 10 years Source: Nielsen, 2014

Co Source: Google Images Makola Market, Open Market in Accra, Ghana Accra Mall, Accra, Ghana

Co Prime Retail Rents (USD $ per m2 per annum) Source: Cushman & Wakefield and Knight Frank, Dec 2014

Co Underlying real estate investment risks Currency depreciation: -Rents US dollar linked -Tenants’ profitability Political risk -Government regimes can change quite quickly

Co Underlying real estate investment risks Land ownership - No registration of ownership - Government grants leases / has the right of expropriation - Bureaucratic process / scope for corruption Region Number of days % of property value OECD High Income344.8 Latin America and the Caribbean625.6 Eastern Europe and Central Asia Sub-Saharan Africa Angola33511 Ghana Nigeria Kenya394.0 South Africa Uganda485.5

Co Corruption / Transparency Corruption still endemic in government dealings Improvement in transparency: JLL Transparency showed in 2014 that Ghana, Kenya, Nigeria, Zambia and Mauritius ranked Global Top 10 of most improved countries

Co Conclusion Pros: Long-term GDP growth, young population, fast growing middle class Rents dollar linked, high demand, oil & gas driven, low supply Cons: Currency instability, land ownership risk, political risk, corruption risk

Co Questions?