The Developers Digest Q1 Issue

14
Have Your Say
A Long-Term Perspective
on the Real Estate Sector –
Beyond Buildings
By Pumi Lukhele
Head of Developments and Construction EA, Gateway Real Estate Africa (GREA)
As an investor in the real estate sector, having
a clear understanding of your investment
purpose will determine how you measure
success. This decision must be supported by solid
knowledge of property fundamentals and the ability
to remain invested through real estate cycles.
Real estate investment is generally regarded as a
long-term commitment and the immovable nature
of the asset class resulted in location and financial
returns traditionally being the most important factors
when deciding to invest.
The pandemic has, however, accelerated
the importance of environmental and social
sustainability for capital markets, with “real estate
impact investment” increasingly becoming a primary
investment consideration, driven by regulations,
funder and tenant requirements.
Real estate investors are nowadays looking at factors
beyond buildings when considering investment,
and it is those landlords and developers who have
successfully aligned the social and environmental
impact of their portfolios to investment returns that
attract greater pools of capital at lower costs.
Similarly, the demand for organizations in the built
environment to reduce their carbon footprint has
increased to such an extent that it is fast becoming
a business imperative. This responsibility is also
not only limited to the construction process but
permeates the operational elements of real estate
where environmental impact is measured through
the lifespan of the building.
While environmental sustainability has already
gained momentum in the sector, investors are now
becoming more intentional about implementing
social impact through real estate. This is done
through the prioritization of people and communities
by ensuring developments are socially inclusive and
beneficial for the broader community, making any
social impact long-term.
As the largest London-listed real estate investor in
Africa, Grit Real Estate Income Group (“Grit”) and its
development subsidiary, Gateway Real Estate Africa
(“GREA”) have onboarded a “beyond-the-fence-line”
approach to all operations, which it believes drives
both profitability and long-term sustainability.
A case in point is the US$306 million sustainability
Adopting a Long-term Perspective in the Real Estate Sector