Share

Property investment 'more than just about profit'

Cape Town - The value of a property investment does not only lie in the return on investment, but also in its sustainability, according to Stan Garrun, executive director of MSCI, a US-based provider of equity.

"Investing in property is about extracting value from the wide range of products available - from listed options to index funds," Garrun told Fin24 at the Investment Property Databank (IPD) SA Property Investment Conference, which took place at the Table Bay Hotel in Cape Town.

"Some property funds have, however, been criticised for not bringing in responsibility in the investment process. The search for value must, therefore, be a bigger term than just being about profit."

He pointed out that the sustainability of a building in terms of the environment and with regard to long term investing was a second factor relating to the ultimate value of such an investment.

READ: Political noise hides real Nkandla issue - Malala

Energy efficient buildings outperform other financially similar investments and according to Garrun "the whole efficiency and moral imperative is now also becoming a financial one as well".

"Property is a good investment via listed funds and becoming more so as there are so many solutions. It makes it easy to get in and out of investments," explained Garrun.

"Listed funds are easily accessed and the South African property sector offers good returns. Some say the returns will not be as good in the future as in the past, but there are still good returns and better than in many other countries."

According to Brian Wilkinson, CEO of the Green Building Council of South Africa (GBCSA), there were only six buildings in SA with GBCSA green building certification four years ago. Today there are 122 such certified buildings representing 2 million square meters of green space in total.

ALSO READ: SA economy could continue 'kangaroo hop'


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.96
-0.1%
Rand - Pound
23.92
-0.1%
Rand - Euro
20.43
+0.0%
Rand - Aus dollar
12.35
-0.0%
Rand - Yen
0.13
-0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders