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Appolonia City awarded ‘Best Mixed-Use Development in Africa’


Appolonia City Greater Accra’s inclusive mixed-use new city has been declared the “Best Mixed-Use Development in Africa” at the recently concluded Africa Property Investment (API) Summit in Johannesburg, South Africa.

The API awards ceremony recognised innovation and outstanding achievement across the entire property industry in 13 categories and covered projects and the leaders shaping the future of Africa’s real estate sector.

CEO Bright Owusu-Amofah of the company said, “It’s refreshing to know that Appolonia City is recognised as an urban development not only relevant to Ghana but across Africa.

“As a city developed by Rendeavour, Africa’s largest new city builder, Appolonia City is a model of sustainable urban infrastructure and a catalyst for economic growth on the continent.”

The projects were evaluated by an independent jury on a variety of areas, including originality of the concept, location, infrastructure, technical and architectural quality, integration into the environment, sensitivity to the local community, innovation and sustainability.

The jury recognised Appolonia City’s investment in infrastructure and sustainability as key drivers of delivering a wider impact on the economy of Ghana.

The API Summit, in its tenth year, is regarded as the continent’s leading real estate investment and development conference bringing stakeholders together from across the continent to showcase how the investment case across Africa’s built environment has matured over the past decade.

Source: Ghana | | Joy Business

Real estate developers to list on Ghana Stock Exchange


Ghana Real Estate Developers Association, GREDA says it is working to get its members to list on the Ghana Stock Exchange, GSE.

The decision of GREDA comes at the time the GSE is preparing to partner with the London Stock Exchange to allow for dual listing of companies on both markets.

Executive Secretary for GREDA Sammy Amegah in an interview with Joy FM said, so far, no real estate developer has attempted to list on the GSE.

He noted that maybe the developers are not doing things right to meet the requirements of listing on the GSE, he also stated that GREDA is working on getting the developers list on the GSE to enable them expand.

“Not many I remember in the past one of our real estate developers was the only real estate developer in Ghana that listed but somehow they could not survive you know when you get listed they put you in a trial moment for six months and if you are able to survive then you migrate into a full listing, somehow the six months didn’t end so they come out, since then I’ve not seen any local developer who has marshal the strength to do that so I think it is a grey area, I couldn’t say the criteria is high but maybe we the developers have not lived up to that standard to be able to get to the point where we will list, but very soon we should be getting there…”

The Ghana Stock Exchange, GSE in May this year endorsed the decision by the government to offload shares of some state enterprises. The decision according to the government will maximize profit for the various state enterprises.

Ghana Stock Exchange said the move by the government will encourage more companies to also list on the stock market to enable them to be competitive.

In response to government decision to offload shares of some selected state enterprises, Deputy Managing Director of the Ghana Stock Exchange Ekow Afedzie said it will allow more Ghanaians to participate in the growth of these enterprises and also impact greatly on the market.

“When you go back to history and look at the establishment of the Ghana Stock Exchange, the reason for setting it up is basically to have government privatize state enterprises through the market and this has not happened over the years only few companies are being privatize so if government officials are coming back saying that look we need to take a look at our state enterprises find out the good ones or the ones that we can make sure that they can go out there and raise capital and list on the market and allow Ghanaians to participate then that is certainly good news it can impact greatly on the market.”

Africa’s tallest building may signal real estate oversupply in Johannesburg’s Sandton


A classic construction boom has unfolded in the Sandton area of Johannesburg even as a worsening economic climate clouds the outlook for the city as a financial centre.

The risk of hubris is clear as Sandton prepares to unveil The Leonardo, a 234-metre skyscraper, billed as Africa’s tallest building and scheduled to open later this year.

Backed by Legacy Group and Nedbank, The Leonardo is a 234-metre skyscraper within walking distance of the Johannesburg Stock Exchange. The development will house 254 apartments, five floors of office space and leisure facilities, as well as a pre-school.

“The residential market is under pressure and there is to our mind limited capital growth in the short to medium term given the weak economy and economic outlook,” says Craig Smith, head of research and property at Anchor Stockbrokers in Johannesburg.

  • “High-end residential product has not been immune to this slowdown and we therefore anticipate that returns from this type of product won’t be particularly stellar over the short term,” he says.

While there’s no prospect of the Leonardo becoming a white elephant, Smith says he’s “not convinced” that the building will prove to be a good financial investment.

  • A one-bedroom apartment in The Leonardo will sell for about 5.5mn rand (330,000 euros), with two-bed apartments priced between 7mn and 8mn rand.

That note of caution echoes the findings of Will Harris, CEO of commercial real-estate software and data services provider Gmaven. He estimated earlier this year that 21.8% of Sandton’s 2-million square metres of office space lies empty.

  • That’s almost double the 11% national vacancy estimate of the South Africa Property Owners Association (SAPOA).

Build it and they’ll come?

The outlook for South African real estate is cloudy at best. Growthpoint, South Africa’s largest listed property company, said in its results for the year to June 30 that tenants are spoilt for choice and negotiations are tough. The group identified an oversupply of space across all property sectors in South Africa, adding that the macro-economic environment is “weighing heavily” on the group’s ability to increase dividends in 2020.

Bruce Abbott, a specialist in real-estate recruitment with MacDonald & Co. in Johannesburg, points to the lack of a similar product to The Leonardo. Most recent developments in central Sandton, he says, have been refurbishments and not new builds, meaning that there should be demand given fair pricing.

Yet office space development in Sandton has continued at breakneck speed even as the risks to South Africa’s economy have mounted.

Given the economic headwinds facing South Africa, a national office vacancy rate of 10% may be the “new normal” in years to come, the SAPOA report predicts.

  • A return to a national vacancy rate of around 5% last seen in 2008 is seen as a tall order as it would need at least 75,000 new office jobs to be created.

Bottom Line: The opening of Africa’s tallest building may come to be seen as calling the top of an unsustainable local property boom.

SOURCE; By; David Whitehouse


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