Invest in the city.

“African cities need total transformation in the built environment. Propertuity takes a holistic approach to its developments that creates both major social impact and a lasting sustainable financial return”

Jonathan Liebmann - Chief Executive Officer

Investment Insights.

The cornerstone of Propertuity's returns are the strategic locations that underpin each of our investment opportunities. We typically invest in areas with solid fundamentals that, anywhere else in the world, would be amongst the most expensive inner city location. Urban regeneration is also cyclical, so what may be considered a lower cost of entry now, will present itself as prime property in time to come. Propertuity has recently offered its first investment opportunity in Durban in Pixley House which sold out in record time pre-construction. The level of demand surrounding the building and willingness to support Propertuity's urban regeneration efforts in Durban suggests that Durban's local investors will experience similar returns to those enjoyed by investors in Maboneng.

Propertuity has to date, only invested in areas that are part of the Urban Development Zone (UDZ) tax incentive, recently extended to 2021. The tax benefit allows a buyer to reclaim 30% of the purchase price as a tax deduction against taxable profit over 5 years (6% per annum) where it is linked to the buyer's business. The result effectively boosts yields by approximately 2% per annum over each of the first 5 years of an investment, providing the investor does not sell.

Financial Partners.

Financiers play a large role in securing the right properties. Our projects are backed by a facility with TUHF and Futuregrowth Asset Management. Investec and Nedbank have been the leaders of commercial property finance in the Maboneng precinct to date and ABSA has recently partnered with us on their first development with Propertuity.

Unit Growth in Maboneng

Peak selling price per sqm

Pre-Construction Trends

The trend of investment growth is typically strongest in the first 3 years, with tapering off in years 4 onwards as the buildings mature and stabilise. The best ROI for investors is for those who buy during the pre-construction phase where a secured bond and a small deposit are the only requirement to secure one's sale. This in turn allows the investor to share in the value growth of the building during construction which is typically between 8-10% for minimal cash input.