Sanlam Africa Core Real Estate Investments Limited (SACREIL), a Mauritius-based company established in 2012, has emerged as a pivotal player in the commercial real estate market across sub-Saharan Africa. Focused on acquiring completed commercial properties with consistent and growing income streams, SACREIL is dedicated to delivering US Dollar-based returns to its stakeholders. Yet, 2023 presented significant challenges, shaped by broader economic hurdles across the region.
The financial year 2023 saw SACREIL contend with a 2.51% decline in its gross asset value, which fell to USD 88.5 million. This downturn was driven by economic slowdowns and increased risks in the African real estate development landscape. Additionally, the company’s net asset value per share dropped to USD 1.68, reflecting the strain on shareholder returns.
Despite these setbacks, SACREIL’s properties in Accra, Ghana; Dar es Salaam, Tanzania; and Lagos, Nigeria, demonstrated remarkable resilience. These assets performed in line with budget expectations before funding costs for the year ended December 31, 2023. This outcome highlights the enduring value of strategically selected real estate investments, even amidst volatile market conditions.
The macroeconomic backdrop further underscored SACREIL’s challenges. The International Monetary Fund (IMF) projected global economic growth to slow from 3.5% in 2022 to 3.0% in 2023. Inflation rates, while steadily declining, continued to weigh on investor confidence and market stability. Sub-Saharan Africa, SACREIL’s key operational region, faced a slowdown in growth from 4.0% in 2022 to 3.3% in 2023. These conditions created a difficult environment for real estate investments, heightening operational pressures on the company.
In response, SACREIL has pursued strategic initiatives to strengthen its financial position. A key measure includes a recapitalization proposal aimed at offering Class A shareholders an opportunity to exit the company. Originally scheduled for completion over two years, this timeline has been extended due to unfavorable market conditions. An update on the proposal is expected by the end of 2023, demonstrating SACREIL’s proactive approach to adapting to market realities and preserving stakeholder trust.
Despite the headwinds, SACREIL remains committed to its long-term strategy of investing in commercial real estate assets with robust income potential. As economic conditions gradually stabilize, the company is well-positioned to leverage its existing portfolio while exploring new opportunities aligned with its investment philosophy.
SACREIL’s journey through 2023 reflects the complexities of navigating the sub-Saharan real estate market during uncertain times. While financial challenges marked the year, the company’s strategic focus on resilient assets and adaptive measures underscores its dedication to delivering value to stakeholders. Looking ahead, SACREIL’s emphasis on sustainable growth and robust investment strategies positions it for a stronger future in Africa’s dynamic commercial real estate sector.
English 
Swahili 
French 
Portuguese 
Chinese