Liberty looking at growth in Africa
FINANCIAL services group Liberty Holdings is in the process of growing its premium property development business into African countries, the company announced yesterday.
The company property portfolio is currently worth R30-billion and boasts shopping malls such as Sandton City, Melrose Arch and Eastgate, among others, and has for decades restricted its growth to the local market.
The group plans to exploit business opportunities in Africa by launching the Liberty Two Degrees, which is expected to be listed on the Johannesburg Stock Exchange before the end of the year and will be managed by the same team within Liberty’s subsidiary, Stanlib that has managed the Liberty property portfolio.
Stanlib head of direct property investments Amelia Beattie told Sowetan opportunities that exist in Africa would be retail-centric.
Stanlib already operates in 10 countries, which include Uganda, Botswana, Namibia, Swaziland, Kenya, Lesotho and Ghana.
“We understand retail and have been involved in developing a number of retail assets in the last number of years.
“We will be looking at those.
“We understand those countries well and we have offices and management teams there, so we will be looking at countries where we are already present and have people on the ground,” she said.
To invest in Africa you need to be there and on the ground and understand the market and the partners, she said.
“We won’t be going into a country where we do not have a deep understanding (of the market) … because we cannot just go in new (countries) and do something afresh,” she said.
“We are not saying we will exclude good quality blue chip company offices. Blue chip companies offer opportunities we know are available and we have been working on in the continent,” said Beattie.
“We will be looking at retail that is iconic and can mimic the same return profile of stable and sustainable rental income.”
Liberty chief executive Thabo Dloti said the company aimed at raising up to R4-billion in new capital at listing.
“Liberty will also offer existing policyholders an exclusive opportunity to switch up to R3-billion of their current direct property holding into a new property portfolio that will invest in the listed entity,” he said.