There is a demand for this service by Absas existing clients, many of whom are expanding operations overseas, says general manager Rob Jeffery.

According to Andrew Glencross, who will head the operation, the local listed property sector has performed well over the past two years, although the development of new office space has virtually dried up because of an oversupply. He believes the situation will continue for about another two years, so an entry into the overseas market will enable the group to continue increasing its earnings.

Offshore earnings make up between 3% and 4% of Absa Commercial Property Finances earnings, but it is expected that within five years this figure could rise to between 30% and 40%.

The new office will provide bridging finance for property deals and hopes to build up a book of up to R500-million in two years. Don Robertson

Business Times