CHAL­LENGES

Finweek English Edition - - IN DEPTH -

LO­CAL CON­DI­TIONS: Value ex­trac­tion is be­com­ing dif­fi­cult given eco­nomic and po­lit­i­cal chal­lenges. FIND­ING VALUE: Emerg­ing mar­kets, like those in Africa, of­ten of­fer the growth that funds seek but re­quire strate­gic flex­i­bil­ity due to the in­her­ent risks and chang­ing sce­nar­ios in these re­gions. IN­VESTOR FLIGHT: “In Novem­ber 2015, the prop­erty sec­tor’s in­ter­na­tional share regis­ter ac­counted for 22%,” says “Nenegate re­duced that to 18%.” COST OF FUND­ING: Lo­cal fund­ing costs be­com­ing higher than yield ex­trac­tion. AC­CESS TO CAP­I­TAL: Banks are likely to adopt a more con­ser­va­tive at­ti­tude that could make fu­ture ac­cess to cap­i­tal dif­fi­cult, es­pe­cially if gear­ing is high. OFF­SHORE: Cur­rency woes re­quire deep pock­ets for the ac­qui­si­tion of off­shore prop­erty, es­pe­cially in de­vel­oped mar­kets.

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