Services

Purchases

Setacea Investments acts as an agent and advisor for investors in the acquisition of residential, commercial and industrial properties in South Africa, Namibia and Botswana. In consultation with the investor, Setacea Investments establishes acquisition guidelines and then seeks properties that meet those guidelines. With its head office in Cape Town and representatives in Cape Town, Durban, Windhoek and Gaborone, we are able to review a continuous flow of property submissions.


Due to rigorous screening, only a select few are ultimately chosen for recommendations to clients.


After securing the investor's approval, the Setacea Investments staff conducts a thorough financial review of the property by examining each lease and preparing appropriate revenue and expense projections. XX also retains and manages the services of professionals whose expertise is required by assessing a property, including architects, engineers, and environmental experts, among other specialists. Setacea Investments will negotiate the purchase contract, with the guidelines that are established by the investor. Attorneys and tax consultants are utilized in documenting the purchase and sale agreement, and in establishing the most tax efficient holding structure.

 

Financing

Most investors who purchase real estate in southern Africa use mortgage financing to cover a substantial portion of the property's total purchase cost. This enables investors to gain the benefits of leveraging. Acquiring advantageous mortgage financing at the lowest possible interest cost is another service provided by Setacea Investments. Since we have long-standing relationships with a number of the region's major mortgage lending institutions, Setacea Investments can identify the most favorable combinations of financing terms for each property acquired. Setacea Investments will usually obtain several mortgage quotes, giving the investor the option of selecting the one most suited to his objectives.


Structuring favorable financing terms for the investor, with protection of the investor's confidentiality, is one of Setacea Investments's prime objectives.

 

Asset Management

The management of commercial and industrial properties in southern Africa is a highly complex and demanding task, and there is a direct correlation between the effective management of an investment property and the degree of success realized in an investment.


Setacea Investments provides strong, professional asset management opportunities for our clients' properties. This service covers a wide spectrum of property types, from office buildings, shopping centers, industrial buildings and apartment complexes to undeveloped land. Many of these asset management assignments require Setacea Investments to contend with such situations as reĀ­leasing vacant space, renovating or upgrading a property's physical condition, refinancing maturing mortgages and generally maintaining a property's economic viability.


When Setacea Investments seeks an appropriate asset manager, our staff establishes an overall management and leasing strategy, and creates an annual operating budget. This budget is reviewed monthly against actual results from the property. If requested to do so by the investor, Setacea Investments has each property inspected quarterly or more frequently if necessary. At the end of each quarter, a detailed accounting report is prepared by the property management firm, with Setacea Investments accompanying the process and providing tactical advice when needed to the investor.

 

Refinancings

Many foreign investors own properties that encumbered with mortgages that are in need of refinancing. In utilizing its relationships with the regions leading mortgage lenders, Setacea Investments employs the same strategy when refinancing mortgages as it does when purchasing new properties.


As agent and advisor for the owner of a property, we will negotiate with the lending institution and recommend the best course of action to the client to accomplish the refinancing. Setacea Investments also has extensive experience working with problem properties that have previously been acquired by a client, and assisting that client in restructuring maturing debt.

 

Corporate Services

It is important for most foreign investors in the region's real estate market to structure their investments properly in order to minimize tax consequences. This structuring often involves the establishment of both a local and offshore holding entity. As the agent for the investors, Setacea Investments can arrange for the creation of the local company and, with the investor's approval, can provide both officers and directors for that company. By serving as officers and directors of the local holding company. Setacea Investments is more able to handle the administrative details of property management, such as opening corporate bank accounts and filing necessary tax returns.