Why ‘loading up’ on Joburg real estate could be smart money
Experts believe long-term bets in the troubled municipality could pay off.
Investors in real estate are finding value in the City of Johannesburg (CoJ) despite the municipality's long list of challenges, such as its financial position, political instability, governance issues, and service delivery failures. Andrew Brooking, the founding director of Java Capital, stated that experienced, long-term investors often see the long-term smart money in Johannesburg. Brooking believes that buying property in Joburg now and anytime in the future is a value proposition that will pay off over time.
While the city faces several hurdles, including its debt crisis, electricity debt resolution, and concerns over instability and weak service delivery, experts argue that Joburg remains too economically important to ignore. Standard Bank's sector head of real estate, Andrew Robinson, said that all speakers at a listed real estate investment trust's (Reits) capital markets day stressed the importance of turning around Johannesburg.
Robinson emphasized that whether it's the office sector, logistics, or residential properties, the city is still the hub, and its success is critical to the sector.
The partnership between Standard Bank and Java Capital aims to bring innovative capital-raising, advisory, financing, and co-investment solutions to South Africa's real estate, infrastructure, and broader real asset sectors. This collaboration will offer real estate investors, developers, listed property companies, and infrastructure-related businesses a wider range of capital solutions, including advisory-led capital raising, debt and equity origination, structured funding, and selected co-investment opportunities.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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