Eris's Real Estate Asset Management: Helping our clients' property portfolios reach full potential
Property has always been a popular asset class for investors. One of the ways you can make property part of your investment strategy, without buying buildings or land, is to invest through a property fund.
Some property funds are structured as collective investment schemes or unit trusts that invest in real estate companies listed on the stock exchange. Others invest in properties that are managed by property development and management companies (so-called direct or unlisted property).
Investing in property can be complex as there are factors like the ongoing management of the real estate and tax regulations to be considered. This is why it's become an attractive option to choose to invest in a property fund with a proven track record, or to outsource property asset management to a team of experts.
Like any other asset, property needs to be stewarded well to enjoy maximum return on investment. That's where real estate asset managers come in - their job is to take investment decisions that will protect and enhance clients' investments into property in challenging conditions.
For example, lower growth forecasts in the South African economy, coupled with high unemployment rates, are expected to increase property vacancies across all sectors with further pressure on commercial property rentals. Real estate asset managers therefore need to be adaptable to be successful in the current challenging property climate.
The Eris Real Estate Asset Management team works to optimally manage clients' funds and property portfolios to achieve their maximum potential. The highly experienced team focuses on unlocking the returns of the portfolios under management through a process of careful analysis, planning and efficient management.
Sudesh Moodley, Head of Asset Management at Eris, says the Eris Real Estate Asset Management team has been entrusted with the property asset management of the Momentum Direct Property Fund. "Our solid track record and professional, hands-on approach to asset management positions us to deliver exceptional, market-beating results," he says. "The Eris Real Estate Asset Management division is responsible for R10.3bn of property assets, with the core executive team at Eris having in excess of 90 years of property experience between them."
The division has consistently achieved returns in excess of internal benchmark (CPI + 5%) and outperformed the MSCI index. "We have achieved an averaged return in excess of 15% over the last 16 years," says Moodley. "We're also always looking at further ways to learn, grow and improve. There is a strong drive around ESG (Environmental, Social and Governance) initiatives, which are providing both social and financial enhancements for our investors, clients and the communities in which the properties are located."
Services offered by the Eris Real Estate Asset Management division include:
- Strategic planning and management
- Optimal balancing of a property portfolio
- Optimisation of funding structure
- Investment analysis and asset acquisitions
- Due diligence for acquisitions
- Facilitation of asset disposals
- Income and expenditure benchmarking and budgeting
- Property life-cycle modelling and monitoring
- Capital expenditure management
- Portfolio specific research
- Performance measurement and client reporting
"The benefit of partnering with the Eris Real Estate Asset Management team is that we can draw on expertise across the full property ecosystem through the Eris group," says Moodley.
The Eris Real Estate Asset Management team has recently launched a new dedicated website for the Momentum Direct Property Fund to reduce property vacancies as well as to strategically grow the fund. For more information or to view properties and vacancies visit: https://www.momentumproperties.co.za/
