REAL ESTATE

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Real Estate 2017-11-30T11:03:50+00:00

REAL ESTATE

OVERVIEW

The Summit Real Estate Fund (“RE Fund”) is a “Property Company” as defined by Regulation 28 of the Pension Funds Act and provides investors with access to scarce non-speculative unlisted real estate investment opportunities that delivers above-benchmark risk-adjusted financial returns and supports the Social and Economic Transformation and Development of local communities and South Africa as a whole.

The RE Fund is managed on a full-time basis by an experienced and dedicated specialist Real Estate team, which provides careful deal selection, followed by focused and active management of direct property developments or acquisitions to generate superior long-term capital appreciation and consistent income returns for investors.

OUR SERVICES

TARGET SECTORS

EDUCATION
“Education is the most powerful weapon which you can use to change the world” – Former President Mandela“According to the United Nations Educational, Scientific and Cultural Organization (UNESCO), each year that an individual is at school, adds a 10% increase in their earnings. This in turn raises the average GDP of a country by 0.37% which ultimately produces a society that is more productive, inclusive, and engaged”
HEALTHCARE
Healthcare is one of government’s expenditure priorities along with post-school education and training, economic infrastructure and social protection.
ACCESSIBLE HOUSING & SURROUNDING COMMUNITY INFRASTRUCTURE

SOCIAL IMPACT CHARTER

Summit Africa is genuinely focused on the transformative impact on South Africa and has established an investment strategy and framework which targets the following Social Impact and Business business objectives as outlined in our Social Impact Charter:

SECTOR FUND AREAS – FEATURES

  • High barriers to entry.
  • Operates in a regulated industry.
  • Well positioned to create stable long term income for investors – long leases underpinned by largely blue-chip investment grade tenants.
  • High barriers to entry for Healthcare – Low availability of appropriately zoned land and Healthcare operates in a regulated industry.
  • An inflation linked or above inflation income stream coupled with the potential for capital appreciation due to the significant scarcity of properties in this asset class.
  • Attractive yields with low inherent risk profile.
  • Low re-let risk due to the strategic and non-homogenous nature of the property to the underlying tenant.
  • Drives overall economic growth.
  • Relatively immune to a change in the economic conditions of the country.
  • High barriers to entry.
  • Operates in a regulated industry.
  • Well positioned to create stable long term income for investors – long leases underpinned by investment grade tenants whose business is not linked to the economic climate.
  • An inflation linked or above inflation income stream coupled with the potential for capital appreciation due to the significant scarcity of properties in this asset class.
  • Attractive yields with low inherent risk profile.
  • Significant land asset value underpinned in densely populated areas.
  • Low re-let risk due to the strategic and non-homogenous nature of the property to the underlying tenant.
  • Drives overall economic growth.
  • Relatively immune to economic cycles – less volatile than other commercial property sectors and has outperformed all property on a consistent basis.
  • Significant under-supply of secure, affordable, quality estate living in previously disadvantaged areas and target growing nodes.
  • Well positioned to create short term capital returns /liquidity for investors through the sale of completed housing units.
  • For completed units that are retained by the Fund, low tenant concentration risk, in addition, an inflation linked or above inflation income stream coupled with the potential for future capital appreciation.
  • Low re-let risk due to the structural undersupply of quality housing in the targeted areas.