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Increasing interest rates have slowed buyer activity as prices of medical commercial real estate remained firm over the last two quarters, but that is changing in 2023. Cap rates are moving slowly upwards as sellers are forced to accept lower prices in order to make returns more attractive to investors.
After five months of waiting on the sidelines, OrbVest is back on the acquisition path having just secured a new core medical office investment in Duluth, Atlanta. The building is 100% leased by medical tenants. Particularly attractive is the fact that all leases are ‘triple net’, which means that all expenses are passed through to the tenants so dividend income is significantly more predictable in the current environment of uncertainty. The net rental income comfortably supports a 7% cash-on-cash return and an 11% internal rate of return.
Discussion points:
- Effects of greylisting, what does it mean for South Africa?
- US dollar to rand exchange rate uptrend.
- Why is this uncorrelated medical commercial real estate attractive to investors?
- Medical 42 – Lakeside Professional Centre
Watch this webinar recording with MoneywebNOW’s Simon Brown in this upcoming webinar where he will chat with OrbVest’s Justin Clarke and Emma Swart as well as Justin Porteus, wealth manager and financial planner of OrbVest’s broker-dealer partner at PKF Capital.
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More about the guests:
Emma Swart
Investment consultant, OrbVest
Emma Swart joined the OrbVest team at the beginning of 2021, she’s an ex-Investec, and Nedbank Private Wealth manager and has recently joined the executive team as one of their co-directors.
Justin Clarke
Operational director, OrbVest
Co-founder of Private Property and One Africa Media, Clarke is a leader, investor and mentor in the technology startup ecosystem in Africa. As a founder of Private Property, he led the company to become the leading internet marketplace for real estate in South Africa. He co-founded One Africa Media in 2012, building it into Africa’s biggest internet classifieds business operating in eight countries with a portfolio of 18 companies. It was recently sold to a Swiss media conglomerate to form Ringier One Africa Media (ROAM Africa).
Justin Porteus
Wealth manager and financial planner, PKF Capital
Justin Porteous is a highly experienced financial services professional specialising in wealth and investment management. After working as a hydrological engineer for six years and running his own business for five years, Porteous found his passion for financial services and gained experience in high-net-worth advisory.
Porteous has a wealth of experience in assisting clients with foreign exchange and investment structures and works closely with top Swiss banks. As a wealth manager, Porteous’s main focus is on managing his clients’ investment portfolios. He works closely with each client to understand their investment goals, risk tolerance, and preferences, using this information to identify investment opportunities that align with their objectives.
Porteous takes a holistic approach to investment structuring and his wealth of experience, expertise in investment strategies and global finance, and ability to work closely with clients have earned him a reputation as a trusted advisor and expert in his field.
Brought to you by OrbVest.
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