Our Mission
To use our entrepreneurial energies to create a multigenerational property investment business, focused on an appropriate entry yield, sustainable cash returns, capital growth commensurate with the risks taken and above all capital preservation.
Vision and Strategy
The company’s strategy is to invest in value for money student housing, multi family blocks of flats and low risk neighbourhood convenience centres as well as to offer related property management and property advisory services.
Growth Strategy
Posterity Capital pursues an organic growth strategy as well as a partnership growth strategy. For large green field and/or brown field projects we partner with established critical mass property companies. This gives us access to those skill sets we are yet to establish.
Investment Philosophy and Approach
We take granular risks which if managed appropriately will offer us the most predictable and safe payment streams, allowing the company to generate superior returns without the risk associated with most other forms of real estate investing.
We believe strong cash income is critical in protecting capital at risk. Over the long term it is cash income and not capital value movements that largely determine total investment property returns. In our view, consistent income massages capital value volatility.
We therefore prefer properties that have continuing strong demand of both tenancy and sale. That means each property must appeal to tenants and investors alike.
While we seek undervalued assets, we do understand that discounts and bargains are only important in the short term. Real benefits will accrue from picking properties with cash income that will grow the most rather than properties with the largest entry discount.
Each property should be appropriately funded (using the right mixture of senior debt, equity and developmental mezzanine funding where applicable) to generate optimal risk adjusted returns.
We prefer properties that are configured for the long term from a physical maintenance and tenancy management point of view.
We adopt an active approach to management, meaning we invest in hands-on property management and facilities management resources to deal with the associated granular risks of vetting, letting and billing to and collecting from individual tenants.
We believe all properties can be positively affected by active management. Accordingly the performance of each property should be back-tested against initial investment parameters, whereby the smallest details of a property’s operations are constantly measured, improved and re-evaluated.
Small reductions in expenses, incremental rent increases, tax allowances and improvement in tenant credit quality are constantly sought. The result may not necessarily be a material increase in cash flow, but rather small increments in the value of each Rand of net income and ultimately the value of the property.