South Point Property Investments (Pty) Limited

Company Description

south-point-room

Established in 2003, South Point’s aim was to fulfill the accommodation needs of students who, up until then, had no choice but to live in substandard housing due to an extreme shortage of accommodation in the tertiary educational residences.

South Point achieves this by acquiring under utilised and distressed commercial properties in the inner city and redevelops them into attractive, comfortable and safe dormitory style accommodation for tertiary educational students as well as residential apartments targeted at young graduates and professionals.

South Point provides management services to its building portfolio in Braamfontein, Port Elizabeth, Bloemfontein, Cape Town, Durban and Pretoria.

south-point-buildingBy converting these commercial properties within the city into safe accommodation, South Point has made a heavy impact on the revitalization of the inner city, drawing people back into the city and creating job opportunities. They work closely with Government and the municipalities.

South Point continues to make inroads into the student accommodation market with a view to dominating this space in the medium term. The current demand / supply gap for student accommodation remains very large given the tertiary education drive by Government to improve skills shortages in South Africa; the shortage of supply of on-campus accommodation by tertiary institutions; and the sub-standard off-campus accommodation supplied by competitors to South Point.

South Point continues to impress us with their passion, creative ideas, and business sense.

The key Executives of South Point are Robert Lowdon, Chief Executive Officer and Edelweiss Gray, Chief Operating Officer.

Investment Logic

south-point-interiorSouth Point was Conexus’ first investment and this opportunity was taken because of the unique nature of the investment. At the time of investing few understood the capabilities and insights of South Point acquiring distressed assets, developing them for a profit and then, by efficient management, attaching a short term but continuous rental stream to that asset which allows revaluation and leverage.

South Point was sold to the Public Investment Corporation (PIC) in 2015, realising 1.5 x money.

For more information on South Point, please visit their website.south-point-deal-thumb