BUSINESS MAGAZINE

1) Can you tell us about Gateway Real Estate Africa (GREA)’s

philosophy and its contribution to the real sector?
When considering GREA, it's important to understand that its establishment
was driven by the goal of undertaking developments across the African
continent. GREA maintains a Pan-African focus and does not limit itself to a
specific industry sector. Instead, we concentrate on delivering real estate
solutions for global clients. Currently, we collaborate with 15 clients
throughout Africa, generating over 85% of our income. Our strategic
approach revolves around working closely with these partners to fulfil their
real estate requirements. We firmly believe that our investments go beyond
mere buildings. In essence, this means that our established relationships in
these countries enable us to unlock opportunities for their businesses. These
opportunities extend not only within the real estate sector but also across
various business domains, encompassing a wide spectrum of potential
prospects.
2) How is the real estate marker faring in Africa, and what are the
recent trends and emerging opportunities?
The current real estate landscape across our continent is challenging,
particularly when considering the significant shift in interest rates. In
contrast to the low 1-2% rates in first-world environments, interest rates have
risen to around 5-6% across Africa. In fact, our interest rates have
historically been closer to double digits, and in some African countries, they
have now indeed crossed into the double-digit territory. This increase in
interest rates has made real estate investment more demanding. However,
with strong partners and a deep understanding of their business strategies, we
have still managed to deploy capital effectively. Through GREA, we have
invested more than $450 million in real estate projects over the past four
years. Furthermore, we are in the process of announcing a new capital raise
from our primary investors, as our development pipeline exceeds $750
million for new projects. Despite the substantial challenges currently facing
Africa, we remain confident that by adhering to our core investment
principles and delivering value to our end-users, there are still significant
opportunities in the real estate sector across our continent.
3) GREA has also positioned itself in Mauritius, notably with the
construction of the Artemis Hospital. What motivated you to invest
in Mauritius and, moreover, in the healthcare sector?
We have had a presence in Mauritius since 2014 through our parent
company, GRIT, which was established at that time. I come from a
commercial and development background. When examining how Mauritius
has positioned itself on the continent with Double Taxation Agreements
(DTAs) with various African countries, it becomes evident that Mauritius
provides a favourable starting point for businesses like ours, which operate
across the African continent. Mauritius boasts a robust financial sector, and
we have received excellent support from entities like EDP. This support not
only allows us to concentrate on our core business activities but also
provides the necessary platform and head office requirements out of
Mauritius.
4) What resources and partnerships have you mobilised to finance the
construction of these infrastructures in Mauritius?
We collaborate with numerous financiers within our group, and in Mauritius,
we have received outstanding support from some of the prominent banks,
such as SBM, with whom we have had a highly successful working
relationship. Furthermore, we have introduced financiers from other African
countries to Mauritius. Given the scale of our investments, it is imperative to
diversify the risk across various financial institutions. Mauritius stands out as
an attractive investment destination due to its investment opportunities and
regulatory framework that fosters a business-friendly environment. We have
forged valuable partnerships with entities like Safyr Capital and, more
recently, Artemis. Additionally, Net Bank has provided excellent support for
our projects in the north precinct.
5) What strategies do you employ to ensure the environmental
sustainability of your construction projects?
Our guiding principle at GREA is to prioritise ESG impact considerations.
Within GREA, we have implemented internal standards to ensure that ESG
impact remains at the forefront of all our development activities. As
evidenced by our past projects, each one has placed a strong emphasis on
incorporating green elements and promoting ESG principles, including
supporting women in the build environment. In countries like Mauritius,
where we have made substantial investments, our focus has been on
environmentally sustainable practices. We are proud to have achieved
several pioneering milestones, not only for Mauritius but also for the entire
African continent. One notable example is the recent EcoDistricts
certification awarded to The Precinct, the first commercial node in Africa to
achieve such a milestone. Our first of three developments at The Precinct
was inaugurated earlier this year and is the highest rated green building in
Mauritius, as well as the highest rated office development in the Indian
Ocean Islands region. This achievement reflects not only our commitment to
environmentally responsible development but also our desire to demonstrate
that Africa can lead the world in pioneering initiatives. Our aspiration at
GREA is to be recognised as a leading developer that contributes positively
to the environment rather than depleting it. We aim to set an example for the
rest of the world by displaying what can be achieved in Africa through
innovation and sustainable practices.
6) Can you tell us more about the upcoming projects in Mauritius?
As mentioned earlier, we recently completed Unity Building, the highest
green rated building in Mauritius, which will form part of a trilogy of
developments at The Precinct in Grand Baie.
Additionally, we are embarking on a second hospital project in collaboration
with the Artemis group, under the guidance of Safyr Capital Partners. We are
incredibly enthusiastic about this endeavour, as it will fulfil the vision for the
medical sector on the island as well.