SPI is the first South African private client asset manager to truly simplify the process of purchasing UK-based real estate - considered a low risk, low volatility asset with the prospect of reliable returns.

Daniël Kriel, the CEO of Sanlam Private Investments, the company within Sanlam that looks after investments for high-wealth individual investors said, “Buy-to-let properties are an effective hedge against a depreciating rand and London property represents an excellent opportunity for capital security and a potential income stream built in.  With the UK’s relatively low interest rates, such bricks and mortar investments are currently attractive given that demand for good rental property in London is expected to exceed supply for the foreseeable future.”

Considered the financial capital of the world and the largest aviation hub in Europe, London’s population is expected to grow to 8.2 million by 2016.  With the Olympic Games taking place in the city within the next five years, property values are expected to further improve from 2012 and beyond. Over the last 35 years, London properties have achieved an average annual growth rate of more than 11 percent. 

Kriel that that for investors preparing for a potential softening in the South African markets, real estate offers a relatively stable underlying asset. “Moreover, historically higher South African inflation rates relative to the UK are expected to continue, leading to a weaker rand in the long term; something that will result in further capital appreciation of offshore portfolios.”

SPI’s investment partner, GAS Properties, is a Cape Town-based company specialising in offshore portfolio diversification, focused primarily on the residential property in the greater London area.  Having formed partnerships with leading UK solicitors, trustees and developers, GAS sources properties and administers the establishment of a selection of tax efficient offshore holding structures.

“SPI has shown leadership in recognising the necessity of offshore property as part of a high net worth client’s diversified portfolio,” said Mariana Tolken, managing director of GAS Properties.  “Over the last five years, GAS Properties has been offering a complete process to invest in and manage buy-to-let properties in London, and we are proud to partner with SPI to share our expertise and knowledge of this market with their clients.”

“By aligning with the right UK partner, SPI has turned the logistical nightmare of purchasing and maintaining an overseas property into a stress-free investment that should pay handsomely over time,” added Kriel.