With the World Bank having recently cut South Africa’s GDP growth forecast for this year to 0.6% from 1.1% as was predicted earlier, following credit rating downgrades from both S&P and Fitch Ratings, businesses tend to consolidate and optimise their operations. With a focus on core business, opportunities are created for investors through the sale of non-core assets by corporates.
According to Elias Tzouvanni, Co-Director of Nexus Property Group (NPG), the contraction of the economy has resulted in the sale of many South African properties that would otherwise have remained tightly held. “For example, we facilitated the sale of Airport Centre Belhar which is a 12000m2 retail centre anchored by Shoprite and 50,000m2 of industrial land in sought after Cornubia Industrial in KwaZulu-Natal.”
Greg Nafte, Co-Director of NPG, explains that a marketplace for the property is created, through various marketing channels, to establish fair market value with the aim to secure an offer on a property on favourable terms and conditions. “Nexus is purely sales focused and our sales process is designed to monetize your property assets within a finite period of time. Properties are sold either through auction or on a private treaty basis and our asset specific campaigns provide a seller with a certainty that at the end of the campaign, we will deliver a result.”
The results that NPG has managed to achieve for clients over the past 12 months are testament to the team’s unique approach, says Nafte. “Before deciding on a course of action for clients we ensure that we understand the property or portfolio, and then create an integrated approach based on the client’s specific needs, where we recommend an appropriate method of sale.
“Being project focused, the team undertakes a process of portfolio optimisation while becoming an extension of the client’s organisation in order to complement the clients’ core-business operations. Clients are then kept well informed throughout the sales process through extensive and formal reporting based on current constant market feedback,” says Nafte, explaining their sales process.
Going forward, Tzouvanni says the team is committed to building on NPG’s success. “The past 12 months saw a streamlining of the NPG sales process, resulting in a record year for the company. The market is slowly starting to realise that selling a property requires an asset-specific marketing approach using the best method of sale to suit the asset.”