CORPORATE PROFILE 2015 CORPORATE PROFILE 2016

Transcription

1 CORPORATE PROFILE 2015 CORPORATE PROFILE 2016

2 COMPANY Novare was founded in South Africa in October 2000 as an independent investment advisory business. In 2006, the management of Novare took a strategic decision to expand beyond the borders of South Africa. Novare Equity Partners was established as a private equity firm investing exclusively in sub-saharan Africa outside of South Africa. Since then, the group has built an extensive network and gained valuable experience and insight into investing on the African continent, increasingly regarded as an investment destination of choice. N O V A R E a c t u a r i e s & c o n s u l t a n t s E S T (100%) Independent investment consultants As a private equity fund manager with a specific mandate to invest in the real estate sector, both retail and commercial, our strategy is to leverage off the expansion of successful South African and international companies in the rest of Africa. E S T (100%) Multi-manager solution specialists Given rising consumer spending by the increasingly affluent middle class in sub-saharan Africa, the need for modern retail facilities far outstrips the current supply. E S T (94.7%) African private equity fund manager Novare s experience and risk mitigating strategies in Africa assist in identifying and implementing sound opportunities as well as navigating the renowned challenging landscape. c a p i t a l E S T (90%) Facilitator of product solutions Workers Health (BEE) Founding Shareholders (26%) (74%) The acquisition of strategically located urban real estate is integral to Novare s c i s w e a l t h E S T (100%) MANCO E S T (100%) Individual financial advice h o l d i n g s investment process. By partnering with the largest and most successful retail companies in Africa as tenants, we are able to deliver superior investments to the market. We deal with premier financial institutions, high-end project and property management as well as construction companies to mitigate construction and risks. a c t u a r i e s & c o n s u l t a n t s b o t s w a n a E S T (51%) Investment service provider INVESTED (38.8%) Boutique asset manager

3 INVESTMENT RATIONALE OUR OFFERING Globally, the pace of urbanisation is increasing. It is predicted that by 2030, 59% of the world s population will live in cities. For developing countries, this number is 55%, an increase of just under 10 percentage points from current levels. The UN states that over 90% of urbanisation will occur in developing countries. In 1980, only 28% of Africa s population lived in cities, rising to 40% in There are 52 African cities with a population of more than a million, equaling Europe, and surpassing India which has 48. Modern retail facilities in urban areas are few and far between in sub-saharan Africa. In the US in 2010 there were 2.5 m² per capita of modern retail space. The corresponding figure for Europe was 1.5. For Zambia it was and for Nigeria, with its massive potential market, As at the end of 2013, the whole SSA s modern retail mall stock (excluding South Africa) totalled 0.5 mil m² whilst South Africa had a total of 21mil m². This is with a population 16 times bigger than South Africa, and an economy almost three times the size of South Africa. The continent s rising middle class is increasingly demanding improved retail experiences. The rise of mobile technology has had a visible impact on African consumers. Local and international news, social media and awareness of products and services available outside of the continent have contributed to the emergence of a savvy middle-class of consumers eager for higher quality products. Novare launched its first Fund, the Novare Africa Property Fund I in July 2010, raising $81 million predominantly from South African Pension Funds. The Fund s characteristics made it a perfect fit given the longer term horizon, as well as above-average returns, these investors need. Strong demand to participate in the African growth story as well as the additional portfolio diversification benefits via the 5% that the South African Reserve Bank allows South African Pension Funds to take up in African investments outside of their borders also assisted in creating the strong demand. The Novare Africa Property Fund II had its first close at 30 June It was launched due to continued demand investors demonstrated for opportunities managed by reputable and knowledgeable professionals on the sub-continent. The fund aims to raise $400 million by 30 June Both funds target returns in excess of 25% net of fees, and are domiciled in Mauritius as well as listed on the Mauritian Stock Exchange. The Novare Africa Property Fund I made its first investment in the of the Novare Apo mall (opened June 2012), the first of its kind in the capital of Nigeria and which changed the retail landscape of this prosperous city almost overnight. Shoprite is the anchor tenant, alongside prominent brands like KFC, Mr Price, MTN, LG, Adidas and Samsung. Further allocations were made to s across the rest of Africa. The Novare Lekki mall in Lagos, nearing constuction completion, is set to open in August 2016 and has taken on both Shoprite and Game as anchor tenants.

4 Additional investments that the fund is committed to include the Novare Gateway mall in Abuja with Shoprite confirmed as an anchor tenant. THE TEAM The Novare Central office park is located in the heart of Abuja s CBD across from the new High Court, and is a mix-use consisting of retail and commercial space. Given the firm s dedicated focus on the sub-saharan Africa region, it has built a team with unrivalled knowledge and experience. With expertise in actuarial modelling, investment management, property and facility management, our team ensures that the funds are expertly allocated and managed. With combined experience of some 270 years, our hands-on Africa team is on the ground in the countries in which we operate. The Novare Matola mall is located on the busy EN4 highway that connects Maputo (Mozambique) to Nelspruit (South Africa). It falls within Matola, a historically industrial area of Maputo, the most populous city in Mozambique and has developed to become a strong mid income residential node and suburb of Maputo. The retail will be anchored by Premier Superspar. DERRICK ROPER chief executive CRAIG LYONS chairman of investment committee OLA LEEPILE portfolio manager PIERRE GROENEWALD chief investment JARED HALLIDAY chief operating ELZAAN KOTZE financial manager LULAMILE MAKASI portfolio manager NALEDI MONGOATO investment analyst JAN VAN ZYL Novare s first foray into Zambia is the Novare Great North mall located along the bustling Great North Road of Lusaka. Situated close to the famous Heroes Stadium, MAIQUE BOCA manager: mozambique DAVE BENNIE head african leasing JOHN CAUSEY zambia HENK OLIVIER manager: financial structuring ANIEN MARAIS financial manager HEIN DU PLESSIS CHRIS COETZEE HARRY VENTER JOHAN BLOM centre manager: novare lekki Novare Great North will cater to a previously underserved region of Lusaka, helping to relieve the heavy inner city traffic pressure. VAUGHN FREEMAN tenant advisor: novare lekki LESLEY LUDICK DIVAN NIEUWENDYK assistant JOHN MACKINNON mozambique COBUS VENTER consultant: AUGUSTINE MWENYA consultant: zambia LUCY CAMPHER manager investor relations and marketing DANIELLA GONÇALVES lease administrator RIGARDT LE ROUX head of design

5 DISCLAIMER This document is confidential, private and intended solely for the addressee(s) and clients of Novare Equity Partners (Pty) Ltd (NEP) (Registration No: 2007/020662/07). Copyright in this document created by NEP will remain vested in us and will not be transferred to anyone in part or whole without the prior written consent of NEP. Past performance is not indicative of future returns which may go up or down. No guarantees are provided in relation to portfolio investment performance. Novare s schedule of fees and charges is available on request. Novare Equity Partners (Pty) Ltd is an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act No 37 of 2002.FSP No (CAT I and CAT II). NEP is approved by the Financial Services Board as a Section 13B Pension Fund Administrator: 24/ 554. NEP is a member of the South African Council of Shopping Centres. NEP is a member of the South Africa Nigeria Chamber of Commerce. C A P E T O W N Novare Equity Partners (Pty) Ltd Fifth Floor The Cliffs Office Block 1 Niagara Way Tyger Falls Carl Cronje Drive Bellville 7530 PO Box 4742 Tyger Valley 7536 SOUTH AFRICA t +27 (0) f +27 (0) J O H A N N E S B U R G First Floor 30 Jellicoe Avenue Rosebank Johannesburg 2196 SOUTH AFRICA t +27 (0) f +27 (0) N I G E R I A Block 16, Plot 14b Albert Iyorah Street Off Babatunde Anjous Street, Off Admiralty way Lekki Phase 1 Lagos NIGERIA t M O Z A M B I Q U E First Floor Millennium Park Building Avenida Vladmir Lenine 174 Maputo t