PORTFOLIO Chartwell Estates 1 Rob Hersov Chairman of Invest Africa gives his views on the potential of the continent Passion investments Al Bailey of Seymours Art looks at where else the world’s elite are putting their money Own your own piece of paradise Chartwell Estates offer you your own private island in the Bahamas La Dolce Vita We walk you through some of Italy’s finest properties from Lake Como to Tuscany I Love NYC Without doubt, New York’s finest triplex penthouse available through Chartwell Estates
Transcript
PORTFOLIOChartwell Estates
1
Rob Hersov
Chairman of Invest Africa gives his views on the potential of the continent
Passion investments
Al Bailey of Seymours Art looks at where else the world’s elite are putting their money
Own your own piece of paradise
Chartwell Estates offer you your own private island in the Bahamas
La Dolce Vita
We walk you through some of Italy’s finest properties from Lake Como to Tuscany
I Love NYC
Without doubt, New York’s finest triplex penthouse available through Chartwell Estates
W e are proud to present “Portfolio” – a collection of unique properties of the world from the Caribbean and New York in the Americas to Dubai and South Africa in
Africa & the Middle East to some gems here on our doorstep in Europe – Tuscany, The Algarve and of course London. So whether it’s a triplex penthouse close to New York’s Central Park or a villa complete with Golden Visa, a private island in the Bahamas or a Tuscan palazzo we are able to sell you your very own unique property of the world. The map above gives an indication of just some of the locations that we are mandated in. In this, our inaugural issue, a truly world-class supporting cast compliments these amazing pieces of real estate. From Sandy Mitchell of Red Book and Al Bailey of Art Invest imparting their knowledge on interior design and investing in collectibles respectively, to an unapologetically
New York
Bahamas
Barbados
London
Bordeaux
Portgual
Rio de Janeiro
African-flavoured contribution from Robert Hersov, James Hopkinson and Cobus Visagie all giving their own unique views on investing in the continent.
In the meantime what have Chartwell Estates noticed about the market from our Mayfair HQ? With its political and financial stability, together with high-end retail, history and cultural attractions, London remains a unique destination attracting investors, domestic and international, but is this a one-way trajectory ever upwards or can we expect gravity to take effect and see a price correction?
We are now above the highs of the bull cycle of 2007 and Prime Central London (PCL) has bucked the trend seen in the rest of the UK due to unreliable global equity markets, exchange rates and the flow of money into safe-haven assets.
We think the last point is the main driver behind the strength of PCL, in part as a hedge against euro uncertainty.
Tuscany
Dubai Hong Kong
Cape Town
The on-going fear of a messy resolution to the euro debt crisis perpetuates this flight to safety but is in no way new. The first time a positive impact on PCL was noted was with the introduction of the euro in 1999, the second the euro debt crisis that started back in 2010.
Along with a handful of other global destinations - New York, Singapore, Shanghai and the Caribbean for example - PCL offers a relatively benign tax regime and financial stability that attracts an international clientele. But as with all investments the overall transactional costs must be considered. The impending UK general election and its associated threats of punitive changes in Capital Gains Tax for non-doms and the so-called “Mansion Tax” could just price London out of the picture whilst making other international cities look attractive once more.
But in the meantime, forget about the General Election or
even the recent Scottish Referendum – it would appear the most important vote has been the one where Prime Central London property has voted to split from the rest of the UK and for that matter, Europe.
Chartwell Estates is a private brokerage and advisory service for UHNWI and their families operating on the discrete acquisition and disposal of property-based assets. Please contact us to learn how we can best help you.
For further information contact Chartwell Estates at [email protected]
chartwell-estates.com
Exchange rates correct at time of going to press
A n effective security risk framework will play a crucial role in a company’s success on the continent and, in an era when cost optimisation is key, it can also help to
minimise unnecessary spending. Africa’s complex operating environments need to be
carefully navigated and understood through a detailed, multi-faceted approach that is underscored by local expertise and knowledge of each country and its customs. Assaye Risk’s experience in risk analysis in Africa and beyond has taught us that any risk strategy must be integrated with a strong emphasis on continuous, effective community engagement.
Past practice shows that paying lip service to such projects can exacerbate an already tense situation and that
Risk Averse or Risk Aware?
Any international company looking to invest in Africa will be aware of the considerable risks and the need to formulate a robust framework to mitigate them. The endemic corruption, poor corporate governance and the risk of social and political instability make it a challenging environment to do business in but the wealth of natural resources and burgeoning opportunities make it an inviting one.
mismanagement can lead to increased hostility toward a foreign company. In many cases the real needs of the community are not understood and therefore cannot be properly met. Locals will have high expectations from the arrival of a foreign investor that will almost inevitably lead to disappointment. The disconnect between the national government and local community is another common cause of friction. All too often a government minister signs away land or other permissions from his office in the capital without adequately understanding or even consulting the local population. Documentation that guarantees a foreign company ownership, while recognised on a national level, is often contested locally. The local population is left feeling disillusioned and resentful toward the company. This ill feeling is often manifested in destructive acts toward said
company forcing it to resort to expensive protective security services for its sites and personnel.
This reactive, protective response strategy is neither cost efficient nor wholly effective. A positive, proactive strategy that assesses and addresses problems before they escalate will produce much more solid and durable results. Drawing on our experience working in Africa Assaye Risk has developed a layered approach that can better identify and prevent or mitigate these potential risks.
The first step of this approach focuses on the current and emerging strategic risks. This entails a close analysis of the risks posed by political events, possible regulatory change, the level of corruption in the country and the likelihood of reputational damage to foreign operators.
Whether the foreign operator is new to Africa or is an established operation the creation of a central hub of understanding that collects, collates and assesses information in relation to these strategic risks is essential.
This will ensure that information is properly understood and acted upon in a timely manner, appropriate to the business. Perceptions count in this environment and must be managed. False rumours, spread by word of mouth or social media, can be hard to dispel and have caused countless problems. Being first with the truth and consistent with one’s messages through a proactive and well-managed strategic communications plan must be an important part of this strategy. This hub will also play a crucial role helping a company to manoeuvre through a complicated, nuanced business environment by identifying the key players in the sector and how best to interact with them. It will also help highlight the benefits a project is bringing, or could bring, to the local and national economy.
The next stage of the approach concentrates on the overarching operational risks a company might face:
• Community License to Operate. Community engagement and support are difficult to achieve but vital to success and must be sustained, persistent and meaningful.
• In-Migration. Poverty and the lack of sustainable employment drive people to seek opportunities wherever they can be found.
• Land Disputes. Land ownership regulations are often complex and applied inconsistently leading to friction and in some cases, conflict.
• Infrastructure. The lack of enabling infrastructure in the critical areas of power provision and transport can significantly affect companies’ development plans and entail considerable additional expense.
• Criminality and Corruption. Crime from simple theft to sophisticated fraud is a feature and key operational risk for businesses in Africa.
• Terrorism. Isolated yet attractive and lucrative assets in developing countries with weak or ineffectual security architecture may present an attractive target for terrorists as with the 2014 Al
Shabaab attack on the mine in Mandera, Kenya and the 2013 In Amenas gas plant attack in Algeria.
This is then followed by a more detailed analysis of a company’s individual assets and operations; how each of these potential threats, or any other more specific ones, might affect them and how best to mitigate them.
All these risks require a solution that involves monitoring, managing and understanding the operating environment fully through properly gathered and analysed information.
This could include conducting a comprehensive land audit to guarantee that the company’s land rights are officially acknowledged by both the local community and the government, and/or human terrain mapping to understand who the key stakeholders are and what they need to make the project a successful, welcome part of their community. Each location will have its own distinct problems (and solutions) so a detailed, investment specific understanding must inform the development of a holistic risk mitigation strategy.
If a suitable strategy is introduced at the inception of an investment or project then the financial loss, lengthy litigation, reputational damage or any of the other potential risks often associated with investing in Africa can be far more easily avoided or managed.
However prevention is not always possible and Assaye Risk’s layered approach can also be applied to reversing embedded issues. Investors that have inherited difficulties can use our framework to create a new, more effective and cost efficient risk strategy. Although the problems may be complex with Assaye Risk’s guidance solving them can be simple and often beneficial both to the locals and foreign companies. Once identified and analysed, we help companies unpick past problems one by one and weave the solutions back into the cloth of the community.
We recommend a planned, consistent, and persistent policy of engagement in order to engineer the community’s acceptance of the foreign investor. This can only be achieved if all parties are suitably informed of one another’s expectations. Through this policy of engagement paired with informed analysis and an understanding of the operating environment Assaye Risk enables companies to better manage the risks involved when investing in Africa and other emerging markets.
Assaye Risk is experienced at understanding a client’s requirements and working to them using the framework explained above to provide initial and then on-going advice and support. Our robust framework ensures that the clients’ investments and projects, together with the operating environment in which they sit, are understood and protected.
www.assayerisk.com
A fter many years working in yacht brokerage, TJB Super Yachts felt that the super yacht market was losing its identity and becoming impersonal and overly commercial. They saw
that the old-world yachtig values of passion and flair were lacking and, without it, the client experience was losing some of its magic.
The team at TJB Super Yachts makes it their mission to ensure your experience in finding and choosing the perfect yacht is a memorable one. They understand the needs of each client are as unique as the yachts they choose to charter or own.
TJB Super Yachts works with an established network of yacht owners and yacht seekers from a long career in the yachting industry. This means that whatever your requirements TJB Super Yachts is best placed to find you the perfect yacht; they understand that your time is
TJB Super Yachts
Founded in 2012 and proudly independent, TJB Super Yachts is a yacht brokerage founded with one purpose in mind: “To create remarkable experiences”.
precious, so only ever make recommendations that are right for you.
St Barths, CaribbeanThe Caribbean’s answer to the South of France,
encompassing all that the Caribbean has to offer; white sandy beaches, turquoise and clear sea, stunning scenery and warm tropical weather. Mixed together with the glamour, class and sophistication of the South of France and Riviera, creating the ultimate in VIP destinations.
At no other time is this more evident than New Years Eve, berths on the dock for that one night are so in demand that they are booked 4 months in advance, yachts are also vying for the best spaces out at anchor days before NYE. Boasting 22 beaches, chic and lively bars, top designer shops and boutiques, and world-class restaurants, St Barths really is one of the world’s top locations.
The epicenter of the island is the bustling capital of Gustavia, with its gingerbread style buildings, is a hive of activity. Luxury brands and cocktail bars aplenty, with the world-renowned Nikki Beach and Eden Rock, offering the best cocktails and nightlife, its no wonder this is one of the most sought after destinations for the rich and famous.
Cruising on a superyacht offers exclusivity, privacy, access to the lifestyle ashore, together with tranquility of beaches such as Anse du Colombier, the idyllic beach accessible by sea or foot. Every year prestigious events are held, and none are bigger than the St Barths Bucket, a regatta featuring a collection of the worlds biggest, fastest and best sailing yachts. With intense super yacht racing and the famous pursuit race around the island, it’s a phenomenally impressive spectacle.
Croatia and the Dalmatian Coast
With clear azure blue water, over one thousand islands, inlets and reefs, and a stunning, never ending coastline, Croatia is fast becoming one of the most popular and stand out destinations in the Mediterranean.
Just 66 of the 1800 islands along the coast are inhabited, offering variety, from the bustling and vibrant towns like Hvar and Korcula, steeped in history and tradition, to the remote and tranquil Cornati Islands, a vast archipelago of untouched and isolated islands. The perfect way to relax and get away from it all.
Hvar in particular has made the superyacht fraternity very welcome. Incorporating culture, food and nightlife, its buzzing and vibrant atmosphere offers something for everyone. Whether swimming off one of its nearby islands and beaches, seeing the sun come up at its famous Carpe Diem club, taking a vineyard trip inland or sky diving, its reputation as the most popular island in Croatia is well deserved.
From taking in the UNESCO world heritage site of Dubrovnik, travelling upstream from Sibenik to discover the spectacular waterfalls at Krka, or island hopping up the coast from Miljet as far as Italy, Croatia has much to offer.
South Of FranceThe French Riviera, offering glitz, glamour and
spectacular scenery. The most popular destination for yacht charters in the Mediterranean, stretching along the French coastline from Iles d’Hyéres to the Italian Border, boasting Azure blue seas, white sandy beaches, and stunning cuisine.
The principality of Monaco is built into the sweeping hills that surround the coastline, home to elite events such as the Monaco Grand Prix, it attracts the rich and famous to it’s plethora of designer shops, vibrant bars and top restaurants. A must visit for those wishing to sample some of the best nightlife in the Riviera.
West of Monaco and down the coast, are iconic stops such as the peninsula of Cap Ferrat, home to the Grand-Hotel du Cap Ferrat. Home to one of the most glamorous
hotels in the world, visited by the likes of George Bush and Bill Clinton, it’s a definite stop off for a yacht charter.
Two of the most recognizable and famous destinations are Cannes and St Tropez. With white sandy beaches, bistros and bars, together with vibrant atmospheres, they are the top spots for sampling the Riviera lifestyle. From the Baoili bar in Cannes to Nikki Beach or Bar 55 in St Tropez, there are few better places in the world to enjoy the party atmosphere and vibe.
Another big draw to St Tropez is the world-renowned regatta Les Voile De St Tropez, which every September attracts some of the world’s top sailing yachts. It’s certainly an impressive spectacle, from racing thoroughbreds, modern performance cruisers to classic yachts. Racing round the cans and coastal races, the bustling atmosphere, visiting spectators, crew and guests all combine to create a fantastic vibe.
CorsicaThe fourth largest island in the Mediterranean, Corsica
is steeped in history and culture. Famously the birthplace of Napoleon Bonaparte, with rugged coastlines and stunning scenery, the influences of both French and Italian cultures combine to create a unique mix of charm and class. With glittering bays and quaint fishing villages, it’s a fantastic destination for charter yachts, boasting deep secluded bays and golden beaches.
Ajaccio is dotted with sites relating to the Imperial memory of Bonaparte, from his childhood home to seafront statues, museums and street names It’s a great town to wander around, with mellow-toned buildings and buzzing cafes – not to mention its large marina and the Sanguinaires islands, a few kilometers to the west.
Perched high on the southern cliffs of Corsica is the picturesque and charming town of Bonifacio, overlooking the waters below, it offers a spectacular vista as you enter its harbor, navigating through a narrow entrance hidden at the foot of its cliffs. With a lively atmosphere and vibe, together with many restaurants and cafes to sample it’s a must visit destination. Sardinia
Arguably one of the most popular cruising destinations for charters in the Med, combining the glamour and vibrant life of the South of France, the chic Italian culture and lifestyle to be found in Porto Cervo, alongside the peaceful beauty of the Maddalena Islands.
The Maddalena Archipelago, composed of 7 main islands and about 60 smaller islands, offer the splendid beaches and shallow seas with shining turquoise waters to rival those in the Pacific Ocean, perfect for swimming and relaxation.
One of the pearls of the Costa Smeralda, Porto Rotondo is a natural paradise with exceptionally clear seas and magnificent beaches. Porto Rotondo town itself is a chic village has a multitude of Haute Couture shops, excellent
restaurants, squares, cafés and charming streets. Just around the corner is the ever-popular anchorage of Cala Di Volpe, home to the best hotel on the island, white sandy beaches and excellent conditions for some water sports.
During the summer Sardinia is a hub for racing and regattas. Holding some of the biggest events in the world. Such as the Maxi Yacht Rolex Cup and Perini Navi Cup. From short races to long Coastal races around the off-
lying islands. Home to the Yacht Club Costa Smeralda, Porto Cervo is the focal point for the sailing and yachting culture within Sardinia. Oozing class and sophistication, designer boutiques, top restaurants and bars, it’s vibrant atmosphere is easily enjoyed.
For any charter enquiries or information, contact the team at TJB Super Yachts +44 (0)201 819 6261 or visitwww.tjbsuperyachts.com
Chartwell Estates is a Private Brokerage and Advisory Service for UHNW individuals and families. The company operates as a bespoke office for the discreet acquisition or disposal of property-based assets, both privately and off-market. We only deal through established contacts, networking globally with private individuals, families and professional advisors. Through our trusted network we also provide a broad range of specialist advisory and management services that are complimentary to our clienteles’ requirements.
Art and Money:An Introduction to Art Investment by
Al Bailey
Alongside heavy investment into property and back into global equities markets over the past 24 months, the Cap Gemini / RBC Private Wealth Management World Wealth Report makes comment on the continued interest in Passion Investments by Ultra High-Net Wealth individuals, with “collectibles” accounting for over 10% of portfolios, 85% of which is holding Fine Art and Sculpture. Certainly when we consider the enormous media coverage of the major evening sales, art history is being re-written in the fall of the gavel as world record prices have tumbled with such consistency, that we are running out of superlatives to describe the sale that was and the sale that is yet to come. The Fine Art market is an exciting and vibrant market place, which is equally complex, increasingly opaque and influenced through the influences of “hot” money, investment alongside collectors and connoisseurs creating ebbs and flows across market sectors and regions. What is evident however, increasingly the acquisition of Fine Art has become symbiotic with the notion of investment – a relationship that has often been an uneasy one.
“Keep your love of nature, for that is the true way to understand art better.”
Vincent Van GoGh
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T he notion of this relationship of Art and Money has been the subject and point of discussion within contemporary art for many years. Artists have frequently used
money as the material of their artwork; auction houses have frequently used that art to make more money. The most famous is undoubtedly Andy Warhol’s 200 One Dollar Bills, which sold at auction for US$43.7 million in 2009. In this instance however, the work was a silk-screen print of money rather than the cash itself. During the recent Christie’s Contemporary Day Sale in London, the artist Darren Bader pushed this discussion further. Bader’s “sculpture”, entitled [tbd] GBP (Lot 128), consisted solely of the money he could raise for the work of art via the crowdsourcing website Indiegogo.
In the video that Bader prepared to entice people to donate money to his work of art he is clear to state that this is “not a scam, it’s not a trick,” and it seems fair enough to take this on face value. After all, the only beneficiary of this work of art was a charity. The winning bidder was able to choose which charity, selected from a pre-determined list, received the crowd-sourced money while also getting a certificate for the work. While there might be a flutter of disappointment that the amount raised fell short of the artist’s hopes (he aimed to raise £310,786, an amount apparently chosen at random) it managed to sell for more money than it was “worth”. Bader raised £10,211 and the piece sold for £12,500.
Yet this piece, almost entirely without substance, runs the risk of exemplifying the spirit of Emperor’s New Clothes that can stick to contemporary art. It is very hard to quantify what this is worth outside the moment of bidding and, while that might appear to be a comment by Bader on the market, the circularity of the argument can make the art disappear altogether. Navigating this uneasy relationship between art and money is more important but also harder than ever.
Yet as much as the contemporary sector is maligned for conceptual pieces, a lack of understanding and what has driven the artist to create such a work is often overlooked. Moreover, many of the works in this sector, and others, which have started to shape the auction environment are being grounded in a deeper connection with the artwork and the artist’s academic thought than we saw 5 years ago. Record prices for the likes of Barnet Newman for example, with his 1961 canvas entitled Black Fire I, which sold for US$84.17M via Christie’s in May 2014, is hardly a household name. Cy Twombly’s Blackboard pieces are another that have captivated the upper echelons of the contemporary market.
We have also seen this trend filter into the Impressionist and Modern sector of the market. Sotheby’s recent Impressionist sale in London was the most successful auction in London ever realising £186.44 million. It achieved this not through any
particular fireworks or special outrider (despite the Monet performing strongly) but by putting together an exceptional group of works, especially the group of works by Monet, valuing them fairly and selling them pretty much mid-estimate every time. In some sense, the surprise was that there was no surprise. There is, however, one lot which deserves special attention: Seurat’s Une baignade, Asnières.
This work on paper made £7.8 million against an estimate of £5,000,000–7,000,000. Seurat is not usually an artist automatically associated with the blue-chip, safe-bets, of the art world. He is much less well-known than certain behemoths and yet this drawing is now the record-breaking work of art on paper. It was in perfect condition, the image is very commercial and easily recognisable from the National Gallery’s Bathers at Asnières, as well as being an eye-grabbing image in its own right. The quality of work appears to have been allowed to speak for itself and trump more obvious market forces in this record-breaking auction.
Of course the art market is far greater than what transpires at the major evening sales each auction season. There are many great galleries and dealers handling works privately or as representative galleries for the artist. The manner in which the major art fairs have evolved is testament to this and while these fairs have developed into events for the social calendar, the quality and diversity of work being offered is compelling and engaging.
Despite the increasing investment-orientated coverage of the art world, we are seeing a return to appreciation of artwork for art’s sake. The fact that many developers specialising in the High-End turn-key residential market are becoming more sophisticated in the artwork they are incorporating into the their developments is in part an acknowledgement to this. Rather than looking at simply decorative objects, many developers are engaging with Advisors and Galleries to provide works, which have a meaningful impact on their environment. This can only be a good thing. It is far beyond anything as crass as buy the house and we’ll throw the Picasso in for free!
It is true that Fine Art can be a wonderful investment and genuine means of diversifying an investment portfolio and strategy. With that said, the investment in Fine Art should never take precedence over the artwork itself. As Warren Buffett once said, “It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price”. In simple terms, whether you are a collector, connoisseur, investor or a dabbler, you should focus on the quality of the work at the price point you want to engage.
seymoursart.com
Photography: Andy Warhol-200 One Dollar Bills
“Keep your love of nature, for that is the true way to understand art better.”
Vincent Van GoGh
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1. Choose the best possible talentYou will get the best result if you use the finest
designers. You would think this hardly needs saying, it sounds so obvious.
A User’s Guide to Creating a Happy Home - and a Beautiful One.
There are three crucial factors to consider when building a home or decorating one, reveals Sandy Mitchell of the RedBook Agency, distilling his firms’ experience into three easy-to-follow steps. You are surely enjoying one of the best feelings known to mankind if you are about to build a new house or decorate one. It is bit a like standing on a high diving board, though. The water below you looks wonderfully inviting yet it is easy to picture what can go wrong. This is the exciting point at which we meet our clients. Then we, Redbook, help them find and select the best possible interior designer, architect or garden designer so they can launch their project knowing they have chosen the ideal creative partners. After working with clients on some 100 projects, we have distilled our experience into this essential guide to success.
Surprisingly, we often hear other ideas: ‘I am thinking of using these architects because they are local’. Or, ‘My friend used this interior designer and liked them so much, I might try the same one’.
It is almost always the case that a wider search for talent will deliver far superior results—if you know where to look. Finding the best talent to suit a particular client is the essence of RedBook’s service.
And there is a powerful financial case for using the best creative talent. Most if not all of our clients want their project to increase the value of their home. This is as important to those who plan to enjoy their new property for years after completing their project as it is for others who expect to sell right away.
And the surest guarantee of adding value is to use an outstanding creative professional. This matters still more when property markets are soft and buyers are nervous. What distinguishes the best? Excellence of design, detailing and finish.
2. Appoint all the creative practices you are going to need at the outset
Are you going to need an interior designer as well as an architect? Be sure to appoint both at the very start.
Each creative professional’s ideas will feed into and affect the other’s. You will also save a great deal of money, time and trouble if the architect and interior designer work in sync from the outset.
When you are creating a garden too, invite the garden designer on board from the start as well. Leaving the garden design until the building works are finished means you will end up living with mud much longer than necessary.
3. Be decisiveBuilding projects and refurbishments too often take
longer and cost more than expected.Take heart. There are many causes of overruns,
but one of the most frequent is the easiest to avoid: changing your mind about the design once the building work has begun.
The secret here is to take your time getting the designs right—and enjoy this creative process. Then you should ‘freeze’ the design before construction begins so the builders and tradesmen can get on with building without any changes of plan.
If you keep these three factors in mind, you are perfectly poised to create a beautiful new house. Now it is time to dive in.
To arrange a compelmentary consultation to discuss your project with Sandy Mitchell, Founder and Director of The RedBook Agency, please call: +44 (0)207 060 [email protected]
redbookagency.com
Johnny’s Cay
If you are looking to invest in the perfect turnkey island, which can provide stunning and functional properties, along with a sound investment for the future, then look no further than the jewel of the Caribbean, the Bahamas. Within this sought after destination, Chartwell Estates are proud to present the private island of Johnny’s Cay.
N estled against the Sea of Abaco and the Great Abaco Reef, a sea abundant with tropical sea-life and suggested to be the third largest barrier reef system in the World, Johnny’s Cay
is the idyllic escape to paradise. Situated alongside Elbow Cay and Man-O-War Cay, Johnny’s Cay is just a 7 minute boat ride from all the conveniences of Hope Town and provides all the necessary utilities direct from the mainland.
This amazing island not only offers you private sun-drenched white sand beaches with crystal clear seas but also harbours protected pathways surrounded by lush foliage, ensuring easy and relaxing walks around the island. There are two stunning beaches with long stretches of calm and protected deep waters, where you can enjoy all sorts of water sports, while the man-made marina ensures a
safe spot to dock your boat. The offshore reef holds all the wonders of the sea and you are ideally placed for snorkelling and diving to see the wildlife from the deep.
The breath-taking accommodation on Johnny’s Cay has been designed and built in traditional Abaco-style. The main residence has two bedrooms, each capturing unrivalled views over the Sea of Abaco and the famed Hope Town Lighthouse, along with a further separate guest house providing accommodation for family and friends.
A peek behind these privileged doors leads to the best Italian heritage has to offer
A peek behind these privileged doors leads to the best Italian heritage has to offer Italian Heritage
C hartwell understands your desire to have only the best and we have identified an appropriate Italian expert as our partner. Contessa Allegra Baistrocchi is an Italian
aristocrat who has lived internationally yet retained her strong Italian roots. She is a qualified diplomat and a published economist. Her pedigree is impeccable with ambassadors, mathematicians and a pope amongst her influential ancestors.
Allegra’s familiarity with the culture and preferences of wealthy international families dovetails seamlessly
La Dolce Vita
Italy is defined by its centuries of exquisite culture and history. Visitors are drawn from around the world to admire the richness of its architecture and to savour its heritage. Beyond the gaze of most, the grand family estates have provided an oasis of refined privacy for succeeding generations. Italy remains a magnet for the wealthy and discerning from around the world, yet access to the finest properties is not easily achieved.
with her discreet ability to find the finest heritage homes through the company which she founded, International Heritage. This enables discerning individuals to own a remarkable historic home in Italy. The partnership with Chartwell is a natural fit.
International Heritage has access to a wide portfolio of exceptional opportunities where noble families have decided that the time has come for one or two of their properties to pass discreetly to a new owner. Many of the properties confer on their owner access to the society events open only to owners of designated heritage homes.
A perfect example is a grand Tuscan Estate consisting of three wonderful historic properties within 60 hectares of parkland, woodland and olive groves. The estate provides a Medici gatehouse, a 17th century limonaia – traditionally used for storing lemon trees in winter, but today the setting for fashion shows or dinners catering for 500 guests - and the beautiful palladian villa from the 18th century. It is the last sumptuous estate to be discreetly available nestled in the rolling hills of Lucca, birthplace of Puccini. It is the perfect location to entertain, to relax with a glass of Tuscan red wine, or to enjoy the operas, which are performed every day of the year.
For some their dream home has always been a castle, complete with ramparts and a drawbridge, where kings have chosen to stay. From its hilltop position, a 10th century tower enables you to survey its 16 hectares of park and vineyard and long views across open tracts of countryside. Within the 5,000 square metres of historic property are a chapel, wine cellar, terraces and courtyards, guest houses, garages and storerooms, a tennis court and a swimming pool. The castle is at the heart of the renowned Piedmont wine-growing region, with its own production of 20,000 bottles each year bringing a whole new meaning to “house wine”.
Lake Como has long been sought after by the privileged, dating as far back as Pliny the Younger. Today’s buzz often centres on George Clooney, but more discreetly presidents, sports stars, captains of industry
and the quietly wealthy choose to spend their time there. On the lakeside lies one of the most prestigious and extraordinary frescoed Palazzos, used often for society weddings or simply as a temporary refuge from the pace of everyday life. And if you should ever tire of the attractions of Lake Como then taking a seaplane for a day spent in Venice provides a memorable alternative.
The elite clients of International Heritage often have quite specific dreams and Allegra Baistrocchi’s trusted relationships with the most important families in Italy may just result in the ideal property becoming available.
Chartwell Estates are very proud to work alongside Allegra and International Heritage as our Italian real estate partners.
For further information please contact: [email protected]@chartwell-london.com
re-emptive action taken beforeApril could prevent CGT chargeshappening. Here, David Hannah,founder of Cornerstone Tax, lets
you know how – and, he has a great ideafor what you could spend your savings on...
Changes to Capital Gains Tax (CGT) are fastapproaching, with the introduction due in April.
Many non-UK residents may be temptedto consider waiting until they dispose oftheir UK residential property to deal withthe issue of the UK CGT charge. However,this would be a serious error of judgment.
The new CGT charge is effectively “buildingup” every day you own the property after5th April. On a £5m London home, basedon modest increases in value, this taxcharge amounts to the equivalent of aLamborghini Gallardo for every year ofownership.
The UK Government’sattitude to avoidancemeans that, to an almostcertainty, trying to avoidthe tax at the time ofdisposal by means of anartificial scheme will bebound to fail. However,
pre-emptive action taken before April 2015will, to the point of almost absolutecertainty, prevent the charge from everarising. This will mean not having to worryabout avoiding a change to tax as it will“never have occurred in the first place”.
There is no doubt that tax changes areinconvenient. Some current ownershipstructures were probably intended toavoid the law as it once stood but this is
PROMPT ACTION NOW
no longer the case. If the intention was toobtain the maximum pre-tax return froma property then it would be unwise tosimply do nothing now.
As with all tax matters, it is imperative toseek professional advice and no more sothan in this situation, where preventativeaction can be taken prior to 5th April 2015to avoid this charge from applying to UKresidential assets.
Stamp Duty Land Tax · Inheritance Tax · Annual Tax on Enveloped Dwellings · Capital Gains Tax
David Hannah ACA CTA · Principal Consultant01858 439 033 · [email protected]
could see you speeding away with thousands of pounds in savings
The cost of doing nothing
Example: £2.5m property in Central London
Capital Gains Tax 28% Inheritance Tax TOTAL
Scenario 1 – SOLD £540,000 £540,000
Scenario 2 – DEATH £1,771,600 £1,771,600
Our advice** NIL NIL NIL
* 2 out of 3 main political parties have pledged to increase CGT to as high as 45% if they win at the next election** if implemented before April 2015
Scenario 1: Property is sold for £4.429m in 2021
Scenario 2: Owner dies in 2021, leaving property worth £4.429m
• Property held by a non-resident individual• Valued April 2025 at £2.5m • Assume CGT rates remain at 28%*
• Growth in value 10% p.a. over 6 years• No further planning is taken on
C hina has become the main export market for Bordeaux wines in particular, much to the chagrin of the French. A reported one-hundred Bordeaux châteaux are currently owned
by Chinese, with the country now the fifth largest wine consumer globally. In our experience the main interest is around the 10 million euros per domain, with four-fifths of production being exported back to China.
Chartwell Estates would be more than happy to guide you through the acquisition of your own vineyard, a process
Sunlight Held Together by Water
Owning a vineyard evokes romantic scenes of sipping your own vintage whilst surveying the row upon row of vines on a balmy evening - think back to Ridley Scott’s 2006 movie “A Good Year”. Alternatively the more pragmatic collector might follow the classic rule taught in studies up and down the English public school system: buy 10 cases, lay them down for 10 years, drink and few and sell the rest. Repeat. But there’s a new kid in town that has just blown all of these ideas clean out of the water - enter the Chinese wine connoisseur.
often deemed time-consuming and complicated. Over the past ten years Chartwell has established in France a wealth of technical knowledge and a vast network of local contacts to assist you in making the decision to purchase/dispose of your vineyard an easy and informed one.
150311TUC-Cartwell Journal Ad v1.indd 1 3/13/15 2:48 PM
Why did you start Invest Africa?Africa is a vast continent with 54 buzzing countries,
all bursting with opportunities provided by local entrepreneurs creating fantastic ideas in traditional sectors such as Real Estate, and new-age technology businesses such as mobile banking. 5 years ago these success stories did not warrant attention from money managers but the tide has changed and now sub-Saharan Africa is receiving decent levels of equity capital, particularly from PE firms.
That is one the principle reasons why Invest Africa was established: to source and advise the high net worth / family office investors on those opportunities that offer a fantastic return in markets that are generally misunderstood by the wider investor community.
What is the Real Estate opportunity in Africa?
The sector is forecasted to provide net annual returns of up to 20% and all dynamics fuelling that growth are fascinating. In residential, a booming middle class, rapid urbanisation and a growing expat community is driving up high-end property prices. This has a trickle down effect into the affordable segment, where activity is robust, particularly in cities like Luanda, where the government is collaborating with the private sector to help fill the massive shortage of housing.
We are very excited about the retail space. Not necessarily shopping malls (an area that we believe is getting, would you believe it, over crowded) but more
Investing in African Real Estate: Q&A with Robert Hersov
Robert Hersov is a South African entrepreneur and private investor based in London. He currently serves as Chairman and CEO of Invest Africa, Managing Partner of African Capital Investments, Chairman of the VistaJet Advisory Board and Chairman of Adoreum Partners. Invest Africa is a global private members club with a multi-service platform for access and investment into Africa. The club has 350 members – all of them business leaders at top global organisations, fund managers, private investors and family offices.
convenience retail or “mini-malls”, particularly in under serviced second cities. Most countries in Africa still have poor transportation infrastructure and getting across a city can sometimes take a whole day. Convenience malls exploit that unfortunate reality and make shopping accessible and gives flexibility to the consumer. We are putting some of our members into an investment vehicle that aims to do exactly that. They have gathered an unrivalled portfolio of locations, a great group of tenants and will be the market leaders in this space within 5 years.
Which country in Africa are you most excited about?
We have always been bullish on the DRC. The country is currently in a period of transition but they have a strong group of ‘rising political stars’ that have been trained at tier 1 institutions are highly educated. They are clued up on the benefits of liberal democracy and capitalism and hopefully will rise to the top of the tree. Kinshasa and Lubumbashi are two massive markets; possibilities in these urban hubs are endless providing you team up with the right local partners.
We have a strategic partnership with Forum Properties, an African-focused large-scale real estate developer that have an incredible track record in high quality mixed-used developments. Their Luano City development In Lubumbashi is the largest real estate project in the region and will transform the city.
www.investafrica.com
United Arab EmiratesNurai
Abu Dhabi has become a sought after destination for those looking to escape to a peaceful island retreat. Situated on the warm turquoise seas of the Persian Gulf, you will find the white sand coastal beaches of Nurai Island, ideally located and designed with luxury and relaxation in mind. Nurai was developed in partnership with some of the world’s most renowned architects, designers and brands, allowing residents access to all of the Island’s five star amenities including three world-class restaurants and a private helipad, all just 15 minutes from Abu Dhabi.
O n Nurai you will find your own exclusive haven in the form of the incomparable Water Villa. Decked out in a luxurious contemporary design, the villas boast
an impressive internal area of 10,011sqft spread over 2 floors. Designed using the finest materials and advancements in modern technology, the villa boasts the unique features of ceiling to floor windows framing where the sea meets the skies of the United Arab Emirates. Along with the luxury of 4 bedrooms,
5 bathrooms, a gourmet kitchen and a maid’s area, the villa is adorned with a fabulous decked area for unchallenged views of the sunset alongside your swimming pool and your own piece of paradise.
Portugal - AlgarveThere is a little known gem nestled within the familiar shores of the Algarve. Steeped in history, the unspoilt town of Loule is surrounded by castle walls boasting a 13th Century castle for history lovers amid a maze of narrow cobbled streets.
N estled in an elevated position you will find The Stone House luxury villa. This idyllic country retreat is ideally placed to offer panoramic views close to the heart of the
Algarve’s renowned beaches and golf courses.The Stone House is a substantial property offering a 4
bedroomed south-facing villa along with a separate guest-house and infinity pool. Approached via a well-maintained tarmac road and accessed via electronically operated gates and a video entry system, there is parking for at least four cars.
This luxurious property has been designed to cater for the needs and desires of the most discerning holidaymaker. From its impressive heated infinity swimming pool capitalising on the spectacular views surrounding the villa, to the beautiful open-sided pavilion boasting spectacular views of the Portuguese countryside, the villa further incorporates a fabulous brick-built kitchen area and seating for a dozen guests or more. The gardens are beautifully landscaped, well
maintained and benefit from the extensive use of natural stone for retaining walls and steps.
The Stone House also comes with the massive benefit of offering the new owners a Golden Visa to Portugal. The Golden Visa programme is a fast track for investors to obtain a fully valid residency permit in Portugal and consequently free access to the vast majority of European countries (Schengen area). Aimed at attracting foreign investment to Portugal, the Golden Visa is a very straightforward and flexible programme, with simple and clear legal requirements. With extremely reduced minimum stay requirements, the Golden Visa is clearly one of the most attractive residency programs for investors in the world.
N ick van Huyssteen’s dream of building a wine farm led to his acquiring Saronsberg in 2002. In February 2003 a huge part of the farm was destroyed by a devastating
fire, which led to the establishing of new vineyards under the watchful eye of newly appointed winemaker Dewaldt Heyns.
Saronsberg has a unique diversity of terroir as the farm consists of two distinct parts (originally named Waveren and Welgegund (Die Erf), remnants
SaronsbergA Decade of Wine Excellence –
a Lifetime of Commitment
During the night of 29 September 1969 most of the picturesque little town of Tulbagh and surrounding area was severely damaged by the largest recorded earthquake in South African history. The occasional tremor can still be felt underfoot throughout the valley and it is in this distinctive terroir that Saronsberg has proven the region’s capacity for producing outstanding wines.
of the historical Twee Jonge Gezellen) that stretch from the centre of the valley right up the Saronsberg, the mountain after which the farm was named. The broad disparateness in altitude, aspect, soil type and temperature produces grapes with contrasting characteristics. Replanting of vineyards was carried out to take full advantage of these variations, culminating in terroir-driven wines.
Waveren lies across the valley floor. Grapes from this farm form the backbone of the Saronsberg range
Words by NICOLETTE WATERFOR
because of the more concentrated colour and flavours and firm, tight tannin structure. These characteristics can largely be ascribed to most of the vineyards lying on partially weathered shale soils.
Welgegund (Die Erf) lies in the shadow of the Saronsberg, has a higher elevation and is 4 to 5°C cooler than the valley floor. A variety of soil types are found here, sandy loam as well as structured red and yellow clay-loam soils with a varying degree of gravel. The wines produced from these cooler vineyards have more floral notes with greater elegance and form the foundation of our Provenance range, while also serving as blending components in the Saronsberg range. Blending the wines from our different terroirs results in wines with a more layered flavour profile and greater depth.
The vineyards are broadly planted in one-hectare blocks while a variety of clones and rootstock combinations are used to further enhance diversity between blending components. With fifteen different cultivars planted on the farm, it is no surprise that blends form an integral part of the Saronsberg portfolio; however, Shiraz remains Saronsberg’s focus – until recently it was the only red varietal bottled on its own. Both the Saronsberg and Provenance Shiraz have proven themselves to be two of the most consistent performers on the South African wine scene.
In the design of Saronsberg’s cellar a variety of production facilities and available techniques were
considered, looking to utilise existing technology in an innovative way. Hence practices such as the force-cooling of grapes (the first South African cellar to do so), intensive hand-sorting and the use of gravity during the fermentation process were incorporated. Saronsberg essentially wanted a hands-on cellar that would provide Dewaldt with many options, allowing him to focus on detail while adhering to the original winemaking philosophy.
In the Saronsberg range – which consists of a Méthode Cap Classique, a Sauvignon Blanc, a Viognier, a Shiraz, a Rhône-style blend (Full Circle), a Bordeaux-style blend (Seismic) and a straw wine – this philosophy finds expression in bold wines with powerful fruit components integrated with well-structured tannins. Sourced from the mid-valley region of the farm, the grapes that form the foundation for Saronsberg wines typically offer exceptional flavour and colour concentration. This allows for gentle vinification that maximises the Saronsberg range’s hallmark colour and flavour, without any of the harsh tannins normally associated with over-extraction.
Though equal in quality and guided by the same philosophy of fruit-driven elegance, Provenance wines – a Shiraz, a Shiraz Rosé and a Bordeaux-style blend – represent a major departure in style from their Saronsberg counterparts. Reflective of the inherent qualities of their unique origin, these lighter wines – with their finer fruit characters – evidence the true
potential of Saronsberg’s diverse terroir.Currently 22 000 cases, of which 70% are red and
30% white wine cultivars, are produced annually. A total of 51 hectares of vineyards are planted on the two farm portions, supplemented by carefully sourced grapes on some of the wines.
Saronsberg, however, offers more than just wine – it offers an experience. The cellar, with its classic Cape Dutch architectural elements, embodies a modern interpretation of the valley’s rich past. The tasting room is avant-garde, with space and light creating an austere interior. The cellar also hosts the Saronsberg Collection, a permanent exhibition of contemporary South African art that suggests an underlying respect for creative expression and unconventional thinking. Artists include Angus Taylor, Colbert Mashile, Diane Victor, Paul du Toit, Norman Catherine, Claudette Schreuder, Rina Stutzer and Walter Battiss. Also keeping watch over the maturation cellar are Farmoo and South Africow from CowParade (the world’s largest public art event).
Another attraction this cellar offers are newly renovated, cosy one- or two-bedroom self-catering cottages, fully equipped with their own built in fireplace/BBQ, making it the ideal place to enjoy the breathtaking views of the valley over a glass of award-winning Saronsberg wine, both in winter and in summer.
After a decade of winemaking, Saronsberg is proudly one of South Africa’s finest wine cellars. With a hands-on philosophy and no compromising on quality,
Saronsberg has consistently raked in the awards both locally and internationally over the past decade. It is also this consistency that led to Dewaldt being nominated to the Cape Winemakers Guild, an association of some of the finest winemakers, recognised for their high standards of craftsmanship.
“There are very few wines in South Africa that perform exceptionally well year after year. That is what we have established here over the past ten years – wines that do just that!” says Dewaldt.
New York I Love You...The Centurion
33 West 56th Street
This is a once in a lifetime opportunity to create the penthouse of your dreams, New York City.
T he Centurion, located in one of Manhattan’s most prestigious neighbourhoods, has been designed by I.M. Pei, the visionary architect behind some of the world’s most imaginative,
and iconic structures. Among Pei’s masterpieces are the Pyramid at Le Grand Louvre in Paris and the Four Seasons Hotel in New York. In creating the Centurion, I.M. Pei sought to build on the distinguished heritage of the built environment in New York, further enhancing the city-scape with meticulous detailing using the highest quality materials.
“We describe The Centurion as a bespoke tailor describes his art: a balanced composition of exquisite materials and richly crafted details that will never look old or dated,” said L.C. (Sandi) Pei. “This project was an unprecedented opportunity to design a building as a work of art in a prime area of New York City that pulsates with life.”
No other metropolis in the world compares to New York City, the centre of sophisticated, cosmopolitan living. With its illustrious social scene, the finest dining, style, arts and entertainment, New York offers limitless lifestyle choices.
“New York is to the nation what the white church spire is to the village - the visible symbol of aspiration and faith, the white plume saying the way is up!” E.B. White
An opportunity exists to purchase one of the three Centurion penthouses or all three as a combined residence at the price of $39,000,000. The options are limitless given the possibility to design the three penthouses to precisely meet your individual requirements. To elaborate - this equates to a super triplex apartment in excess of 9,000sq ft of prime New York Real Estate consisting of ten bedrooms and ten bathrooms. L.C (Sandi) Pei is personally at your disposal to explore this outstanding opportunity.
The Centurion is an elegant, exclusive condominium enviably located amid the galleries, luxury merchants, world-class restaurants and hotels of one of Manhattan’s most prestigious and cosmopolitan neighbourhoods. Ideally located at 33 West 56th Street between Fifth and Sixth Avenues, the Centurion is the only ground up condominium project in New York City designed by Pei Partnership Architects and I.M. Pei.
From the world famous Museum Mile along Fifth Avenue, the most coveted retail outposts on Madison Avenue and trendy Soho, the eateries along the Meatpacking District, to brilliant performances by internationally acclaimed talent at the Lincoln Centre, the variety of attractions and activities is truly infinite.
With a population of 1.6 million residing in an area of about 34 square-miles, Manhattan represents the epitome of big city life. Brimming with theatres, museums, restaurants, universities, quirky neighbourhoods, and historic attractions, Manhattan is the ideal living choice for those who truly enjoy the urban lifestyle and the culture that comes with it.
Chartwell Estates is offering this once in a lifetime opportunity in collaboration with Elisa Marcoi, the UK affiliate agent of New York Residence Inc. – one of the leading (boutique) Real Estate brokerage firms in Manhattan. For this or any other real estate enquiries you may have in New York City we would be pleased to assist you and to accompany you to view The Centurion Condominium and the penthouses. Please contact us at: [email protected]
£27,000,000$39,000,000€36,000,000
Discoveries from the Den.Brett Gregory-Peake Shares Epistles
from Inside the Agency.
THE PRINT REVIVALSome 20 year ago, I arrived at Vogue House for
my internship with GQ. At the time, it represented a world of opportunity; access to parties, premieres, designer goods and all kinds of fanciful trappings often idolized by a naïve imagination. Typically, the mirage didn’t indulge reality but some published work did emerge, including an article on carp fishing and a risqué encounter on public transport. Needless to say, the journalism career was short-lived save for some freelance work, replaced instead by a new quest that is now etched in binary code on Linkedin. Two decades on and the world has come full circle, as I’m back in the ‘field of dreams’ as Editor of the Adoreum Magazine and launching our sixth edition. Despite the threat posed to print by the digital age, I have found that the two are actually quite handsome bedfellows. Tablets and mobile devices deliver greater accessibility, convenience and
connectivity to digital publications, where embedded content can be shared and popularised through our cherished social media environments and quickly circulated to a list of believers. Print though is very much alive and more relevant than ever. It’s exciting again, almost rare in a world where everyone is online with access to self-publish tools and cheap creative. We pretty much created our magazine by accident. The moment we printed it, we found our clients wanted one too. Print is back as a mark of excellence.
THE POWER OF BRAND
In Feb 2013 we pulled off a shoot for a residential development in Mauritius called Royal Park. It was the underdog amongst the competitive set, who were streets ahead in terms of development progress and in some cases aligned with well known brands. We realized the importance of delivering something different and
a style that would position the project in a premium context. We needed to compete in the same category and we needed to deliver brand credibility without the same brand associations. Equipped with clothes kindly lent by Ralph Lauren and photographer Jonathan Glynn Smith, we set off to capture what we had determined by this time was the true essence of Mauritius, and now Royal Park. Thanks to our local production team and a little spontaneity, we pulled together an assortment of toys including a seaplane, a beach buggy and multiple powerboats to create our dream sequence and illustrate the developer’s vision. Two years on and the project is now one of the most successful on the island and developing new phases at pace. Last year we won the Best Development Marketing award for our work. What it illustrated was the power of branding and the storytelling to seduce and sell. The world may have gone through an economic car crash but that hasn’t changed people’s ability to wonder, and believe in something that’s presented appropriately.
THE RETURN OF THE PITCH ROSTER
Last week we received a pitch brief from a leading property brand seeking help to launch their new development. I come from a media agency background where the walls were built through big pitch wins and creative one-liners, therefore this was nothing new. However, today, much of our work comes through word of mouth and recommendation, so when the brief
landed, there was a small sense of panic and a murmur of discontent. Needless to say, we rubbed down the white board, rolled up our sleeves and pinned a cracking idea to the board. The campaign wrapped, printed off ‘leave-behinds’ in hand and USB armed, we head off for our slot, neatly packed into the end of the day and number seven on the list. We are waiting eagerly for our moment to shine while number six agency finish up. Suddenly, there’s laughter - damn, they’re getting on. Then, through the glass partition, we notice that they are cool, fashion agency types and have been allowed to run over by 45 minutes. Doubt and pressure ensues as you are left to consider, are we funny, are we cool and is the idea any good? As the other agency emerges, there’s a quick moment of judgment and competitive recognition in the 15ft stare. Whatever the result, the old fashioned print roster process keeps you on your toes, generates positive energy and stimulates creativity. It helps of course that we won. We’ll have a few more of those please.
Brett Gregory-Peake is a Director at Adoreum, an
insight driven business development and marketing firm that works with developers and property brands to enhance lead generation and sales.
www.adoreum.com
PETER SIMPSON, GUINNESS BREWER
Sub-Sahara Africa (SSA)Is Going ‘Mainstream’
Sub-Saharan Africa is a rapidly growing investment theme and its dynamics will increasingly impact on both developed and other emerging markets. The region is particularly interesting to investors on account of both the demographics, the rate of change of the markets and the low correlation with developed and emerging markets. The May 2000 cover of The Economist carried a picture of Africa titled ‘The Hopeless Continent’. In March 2013 that changed to ‘Africa Rising’ with a feature concluding that the reforms and investment would soon bear fruit. The time is now as the investment is increasingly coming from international investors and with it the technology and transparency of dealing in the markets. Sub-Sahara Africa (SSA) is going ‘mainstream’.
S ub-Saharan Africa is defined in investment terms to exclude the Arab countries of the Middle East and North Africa (MENA) which have more developed markets with their own dynamics after
the ‘Arab Spring’. ‘Pure SSA’ is normally taken to exclude South Africa, which dwarfs the rest of the region with an equity market capitalisation nearly three times its GDP. Nigeria,
whose economy overtook South Africa last year to become the biggest in Africa at $500bn, has an equity market of only 20% of its GDP. Ghana is 7%, Kenya is 40% and the global average is 87%. There is plenty of ‘room to boom’.
The GDP growth rates in SSA are exceptional as 7 of the world’s 10 fastest growing economies are in SSA (IMF). Clearly it’s easier to move that needle from a low base (as
per the debate on Chinese growth at the other end of the spectrum), but that only supports the momentum argument. Furthermore the diversification of that economic growth is pronounced, with Nigeria deriving 80% government revenues from oil whilst Kenya has a consumer-driven economy which has seen the equity market mimic the linear ascent of the S&P in recent years. Low oil prices benefit the East and Southern Africa economies, which are all fuel importers.
In 2012 there were an estimated 800 million people living in SSA. The IMF forecast that to more than double to 1.7 billion by 2050. Africa is the second biggest continent in both land mass and population. Half of those people are under 20 years old, compare that to the ageing population in developed countries. With labour costs 2-10% of European, US and Japanese rates, that will help drive increases in productivity.
Key metrics including life expectancy, literacy, GDP-per-capita rates, economic freedom, corruption metrics, conflict and levels of urbanisation are all improving. Clearly these have not had a uniform basis-change across all of Africa’s 53 nations, as corruption is still a major problem and violence touches too many lives. However more and more countries are successfully making the transition from authoritarian regimes to stable democracies. 30 ruling parties or leaders have been democratically removed by voters from 1991-2011, compared to only 1 peaceful transition of power from 1960-91.
Investment in SSA is happening internally and externally. Foreign direct investment flows (not aid) have had a bigger
impact on financing strong growth with $54bn in 2015 ($37bn in 2012), growing faster than any other region in the world. Debt markets have developed substantially to finance much investment across the continent. The banking sector is particularly developed in Nigeria and Kenya.
Infrastructure projects from private equity funds funded by Sovereign Wealth Funds, DFI’s and pension funds have improved power & generation, transport and telecoms networks, but much more is needed. International investors are increasing allocations to equities. A few years ago that investor base was 40% US, 40% European and 20% South African. Now it is increasingly about the US investor as reforms are implemented. SSA ex-SA is estimated to be 15-20% of the frontier markets arena and both US hedge funds and pension funds are building positions in anticipation of the ‘next China or India’. The low debt to GDP ratios of the frontier African countries are increasingly attractive. SSA Equities averaged across countries are one of the few areas where prices are still lower than the 2008 peak, yet earnings are higher.
The low correlation between SSA equities and other regions helps fund managers reduce volatility of returns and increases the potential investor pool.
Chartwell Estates is a Private Brokerage and Advisory Service for UHNW individuals and families. The company operates as a bespoke office for the discreet acquisition or disposal of property-based assets, both privately and off-market. We only deal through established contacts, networking globally with private individuals, families and professional advisors. Through our trusted network we also provide a broad range of specialist advisory and management services that are complimentary to our clienteles’ requirements.
For enquiries or if you would like to feature or advertise in a future issue of Portfolio please contact [email protected] in the first instant for further information.
Michael J Christian lived and worked in Europe & Southern Africa, working in the mining industry and then in commodity derivatives before joining Chartwell Estates in 2012. Michael took over the running of Chartwell Estates in 2014 with a view to bringing the highest level of service to its clientele around the world.
Francis Holmes has a background in art history but plies his trade in property on a day to day basis, bringing his design skills to our clients’ projects. Francis continues to keep a keen eye on the art world, when not enjoying his two guilty pleasures - Cardiff City FC and the Welsh Rugby Team.
Orville Wright taking first flight with brother Wilbur runningalongside at Kitty Hawk, North Carolina, 17 December 1903.
Image credit: WSU/planepix.com
A feW SeleCt peOple HAve beeN gIveN pArt Of tHe WOrlD’S fIrSt AIrCrAft. preSIDeNtS, AStrONAUtS
AND ANyONe WItH A bremONt WrIgHt flyer.
the bremont Wright flyer is a tribute to the Wright brothers’ famous aircraft. It’s remarkable to look at. but what makes it even more remarkable is that it features actual material from that very first aircraft. the watch also features another first: our first proprietary movement, the bWC/01. the Wright flyer is available now in a limited edition. but it’s unlikely to be available for long.
