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Market-leading commercial property finance solutions
When a commercial property opportunity is recognised and finance is needed, Nedbank Property Finance leads the market in providing agile solutions that help realise your vision.
Nedbank Property Finance specialises in financing commercial, industrial, retail and residential development property, offering loan funding to developers, owners, occupiers and investors. Agile financial solutions include access to undrawn funds, interest-only periods, fixed and floating interest rates, flexible repayments and residual value transactions.
What we do
Development Finance
Usually short-term in nature, development finance solutions can be designed for small-, medium- and large-scale buildings, conversion or redevelopment projects, and major refurbishments.
Equity participation
Through our specialised Property Partners Division, we enhance your flexibility in property-based investments and operations by taking an equity finance position in property developments and acquisitions, land investment and portfolio assemblies. Our selective approach in this type of financing, together with our position and strength in the market affords you increased risk mitigation and the ability to enter into larger transactions with limited equity. Nedbank’s interest in these equity transactions is achieved either through direct shareholding, mezzanine loans, or profit-sharing arrangements.
Listed sector solutions
A history of active engagement with property funds and premier companies listed on the JSE has resulted in deep knowledge and insight, making Nedbank Property Finance the market-leading provider of finance solutions for the listed-property market. Enabling this dynamic sector involves agility and highly customised lending that is secured by a portfolio of commercial, residential, retail or industrial properties.
Investment solutions
For the investor seeking income-producing returns with capital appreciation that outperforms other investment options. Owner-occupiers of industrial and commercial property and the listed property sector can expect finance options that are crafted and honed to optimally meet their financing requirements within commercial, industrial and retail property investment.
We enable smart investment solutions through long-term lending; loans secured against property investment portfolios; and structured investment loans allowing investors to customise their agreements in terms of amortisation, interest rates, residual values and cashflows.
Affordable housing finance
At Nedbank Property Finance, we are proud of our role in transforming development opportunities into quality communities. This is made possible through the focused approach of our Affordable Housing division. Funding opportunities for new affordable housing ventures are identified through the extensive network of developers across the public and private sectors. A selective partnership approach with credible and experienced developers with a proven track-record enables us to utilise a full spectrum of resources to ensure value-driven service and delivery of quality projects to the market.
Residential development finance
Backed by a discerning approach, we provide funding solutions for large-scale residential housing developments, enabling key developers that have a sound reputation for delivering residential stock to the market. A minimum transaction amount of R5 million is set out for property developers or residential investors in need of short-term bridging finance for the acquisition of land, the installation of services, and the construction of buildings.
Our client-centred mandates and processes are matched to the specific needs of your particular opportunity and business with a view to yielding a solution that unlocks value and a range of benefits for your business:
- As a consistently active, market-leading financier, we share with you our intimate understanding of the broader property landscape.
- Our decentralised mandates and decisionmaking enable quicker turnaround times in responding to your needs.
- The deep, industry-specific experience and expertise of our sales and credit teams enable us to act in an advisory capacity, adding greater value to your property opportunity.
- Our relationship-focused structure enhances your access to our senior management across all disciplines.
CIB Property Finance Africa: Breaking borders through excellence
The numbers speak for themselves. With an approximate market share of 40% in South African commercial, industrial, residential and retail property finance, Nedbank CIB Property Finance’s extraordinary value proposition and strong client-focused approach are undoubtedly paying off. On the back of these figures, the Property Finance Africa team has their sights firmly set on creating a ripple effect of this success across the African continent. In a broader context, this aligns well with Nedbank Group’s vision of becoming the most admired financial services provider in Africa.
The Property Finance Africa team understands that, to achieve this goal, a measured, patient and prudent approach is required due to the unique nuances of the African market. The team’s approach is being client-centred, structuring highly innovative funding solutions and providing sustainable value to transaction partners and development stakeholders. This approach is bearing fruit based on a number of property finance deals that have been concluded or are nearing completion in various African countries.
Property Finance Africa’s key-focus subsectors include retail, commercial buildings, light industrial developments and select residential developments. As part of a solutions-driven business, the team offers customised financial solutions to developers, property funds and private investors. What differentiates Property Finance Africa from competitors is the team’s thorough understanding of the political, economic, regulatory, tax and legal environments of the various countries.
Most recently Property Finance Africa closed its first real-estate transaction in Nairobi, Kenya. The transaction sponsors were Impact, a specialist investment company that focuses on warehousing and logistics in sub-Saharan Africa. This transaction comprises a USD21,5 million funding package for infrastructure and the phase 1 construction of the Nairobi Gate Industrial Park.
In another success story, Property Finance Africa recently closed a transaction in Kenya for a subsidiary of Centum Investment Company plc, East Africa’s leading investment company. The team concluded a USD65,65 million refinancing deal for the Two Rivers precinct, consisting of 1,5 million developable square metres.
It is clear that Property Finance Africa is fast becoming a continental force that breaks borders through excellence.
Nedbank partners with OpenSpace to create value for clients
This South African lender sees 360 photo documentation disrupting conventional practices in construction.
Nedbank Property Finance is the largest commercial property financier in South Africa. In August 2018, Nedbank Property Finance extended its capabilities and opened its doors to funding opportunities in key African markets, outside of South Africa.
Over a short period, with a skilled and experienced team providing unique structuring solutions to clients, Nedbank Property Africa scooped the prestigious award for notable transactions on the continent – Top Real Estate Bank in Africa in 2019 and again in 2021.
The 2021 award was a unique achievement, as the Nedbank team was constrained with travel restrictions, which made it even more challenging to offer funding solutions to clients outside of South Africa. Travel restrictions meant funders were faced with difficulty in funding development projects that required continuous monitoring and payments for completed work at construction sites. It was then that Nedbank introduced the OpenSpace platform to unlock funding for development projects to help clients when it mattered most.
Seeing opportunity in a crisis
Usually, funders of property development transactions require an inhouse team to verify the work on site. These site inspections occur every month to monitor delivery risk (cost, time and quality elements) and to approve drawdowns or payments based on pre-agreed milestones to ensure that the money is used to complete the construction of the property in line with this scope. And because of the particular nuances of each market, loan sizes as well as the complexity and type of buildings vary for each project.
Seasoned professionals in the construction industry have always been sceptic about new technologies, and although the Nedbank Disruption team came across OpenSpace in 2017 already, the platform was not leveraged at the time.
But then the Covid-19 pandemic hit, and travel was restricted by severe lockdown regulations. Clients were impacted severely and Nedbank’s internal project monitoring teams could not access sites that did continue to operate. Without inspections, no payments could be made, which posed the risk of huge delays and additional preliminary and general costs. However, to maintain client delivery, Nedbank’s project management team resorted to doing site inspections via WhatsApp video calls. For obvious reasons, it was far from ideal, and the team needed a more sustainable and professional way to execute their function and saw the golden opportunity for OpenSpace.
When other banks could not or would not undertake development finance for clients because of the inability to monitor risk, Nedbank’s view was the opposite, posing the question: ‘In a time of crisis, how can we partner with our clients and offer them innovative solutions?’
Leveraging OpenSpace to create value for clients
The Nedbank journey with OpenSpace began by unlocking opportunities for four clients in three African countries – Kenya, Morocco and Mauritius.
Besides enabling Nedbank to pay clients on time and seamlessly by viewing photo documentation and proactively engaging with them in terms of costly change orders and potential delays, clients saw the benefit of using the Openimmediately. The ease of using the App, as well as accessibility anytime and from anywhere, gives Clients access to useful information.
Clients could simply log in to the app from their mobile devices from anywhere in the world and at any time, despite different time zones. This enabled clients to track site progress at their fingertips and to facilitate site-office communication easily using the core functionalities of OpenSpace. They could post notes and questions using the field note functionality and receive an instant response.
The time-stamped photo trails improved overall recordkeeping of on-site progress, which enhanced management reporting for clients, and the visual imagery comparisons done through a split screen functionality gave clients the ability to compare monthly progress, saving the client and the professional teams time and money.
Creating value for clients
‘OpenSpace is an incredible tool to monitor construction risks proactively,’ says Genevieve Naidoo, Divisional Executive: Property Finance PM, Valuations & Sustainability Nedbank CIB ‘Initially we were concerned about the additional cost of the platform, as property development projects are sensitive to extra costs. But the benefits far outweigh the cost of the technology in terms of saving time for professional teams. Being able to pay our clients quicker creates a huge benefit for them in managing their cash flow cycles’.
Through Nedbank’s partnership with OpenSpace, clients who take up this solution can have their professional teams up and running on the app in less than an hour, with access to support teams to assist them with any queries on how to use the app.
Nedbank plans to scale the use of OpenSpace across its portfolio, including in South Africa, where 25 sites are scheduled to use the app by the end of 2022.
Cape Town
+27 21 416 7000
Durban
+27 31 364 1111
Gauteng and Bloemfontein
+27 11 294 4444
Pretoria
+27 12 436 7000
Eastern and Southern Cape
+27 41 398 8000
Market-leading commercial property finance solutions
When a commercial property opportunity is recognised and finance is needed, Nedbank Property Finance leads the market in providing agile solutions that help realise your vision.
Nedbank Property Finance specialises in financing commercial, industrial, retail and residential development property, offering loan funding to developers, owners, occupiers and investors. Agile financial solutions include access to undrawn funds, interest-only periods, fixed and floating interest rates, flexible repayments and residual value transactions.
What we do
Development Finance
Usually short-term in nature, development finance solutions can be designed for small-, medium- and large-scale buildings, conversion or redevelopment projects, and major refurbishments.
Equity participation
Through our specialised Property Partners Division, we enhance your flexibility in property-based investments and operations by taking an equity finance position in property developments and acquisitions, land investment and portfolio assemblies. Our selective approach in this type of financing, together with our position and strength in the market affords you increased risk mitigation and the ability to enter into larger transactions with limited equity. Nedbank’s interest in these equity transactions is achieved either through direct shareholding, mezzanine loans, or profit-sharing arrangements.
Listed sector solutions
A history of active engagement with property funds and premier companies listed on the JSE has resulted in deep knowledge and insight, making Nedbank Property Finance the market-leading provider of finance solutions for the listed-property market. Enabling this dynamic sector involves agility and highly customised lending that is secured by a portfolio of commercial, residential, retail or industrial properties.
Investment solutions
For the investor seeking income-producing returns with capital appreciation that outperforms other investment options. Owner-occupiers of industrial and commercial property and the listed property sector can expect finance options that are crafted and honed to optimally meet their financing requirements within commercial, industrial and retail property investment.
We enable smart investment solutions through long-term lending; loans secured against property investment portfolios; and structured investment loans allowing investors to customise their agreements in terms of amortisation, interest rates, residual values and cashflows.
Affordable housing finance
At Nedbank Property Finance, we are proud of our role in transforming development opportunities into quality communities. This is made possible through the focused approach of our Affordable Housing division. Funding opportunities for new affordable housing ventures are identified through the extensive network of developers across the public and private sectors. A selective partnership approach with credible and experienced developers with a proven track-record enables us to utilise a full spectrum of resources to ensure value-driven service and delivery of quality projects to the market.
Residential development finance
Backed by a discerning approach, we provide funding solutions for large-scale residential housing developments, enabling key developers that have a sound reputation for delivering residential stock to the market. A minimum transaction amount of R5 million is set out for property developers or residential investors in need of short-term bridging finance for the acquisition of land, the installation of services, and the construction of buildings.
Our client-centred mandates and processes are matched to the specific needs of your particular opportunity and business with a view to yielding a solution that unlocks value and a range of benefits for your business:
- As a consistently active, market-leading financier, we share with you our intimate understanding of the broader property landscape.
- Our decentralised mandates and decisionmaking enable quicker turnaround times in responding to your needs.
- The deep, industry-specific experience and expertise of our sales and credit teams enable us to act in an advisory capacity, adding greater value to your property opportunity.
- Our relationship-focused structure enhances your access to our senior management across all disciplines.
CIB Property Finance Africa: Breaking borders through excellence
The numbers speak for themselves. With an approximate market share of 40% in South African commercial, industrial, residential and retail property finance, Nedbank CIB Property Finance’s extraordinary value proposition and strong client-focused approach are undoubtedly paying off. On the back of these figures, the Property Finance Africa team has their sights firmly set on creating a ripple effect of this success across the African continent. In a broader context, this aligns well with Nedbank Group’s vision of becoming the most admired financial services provider in Africa.
The Property Finance Africa team understands that, to achieve this goal, a measured, patient and prudent approach is required due to the unique nuances of the African market. The team’s approach is being client-centred, structuring highly innovative funding solutions and providing sustainable value to transaction partners and development stakeholders. This approach is bearing fruit based on a number of property finance deals that have been concluded or are nearing completion in various African countries.
Property Finance Africa’s key-focus subsectors include retail, commercial buildings, light industrial developments and select residential developments. As part of a solutions-driven business, the team offers customised financial solutions to developers, property funds and private investors. What differentiates Property Finance Africa from competitors is the team’s thorough understanding of the political, economic, regulatory, tax and legal environments of the various countries.
Most recently Property Finance Africa closed its first real-estate transaction in Nairobi, Kenya. The transaction sponsors were Impact, a specialist investment company that focuses on warehousing and logistics in sub-Saharan Africa. This transaction comprises a USD21,5 million funding package for infrastructure and the phase 1 construction of the Nairobi Gate Industrial Park.
In another success story, Property Finance Africa recently closed a transaction in Kenya for a subsidiary of Centum Investment Company plc, East Africa’s leading investment company. The team concluded a USD65,65 million refinancing deal for the Two Rivers precinct, consisting of 1,5 million developable square metres.
It is clear that Property Finance Africa is fast becoming a continental force that breaks borders through excellence.
Nedbank partners with OpenSpace to create value for clients
This South African lender sees 360 photo documentation disrupting conventional practices in construction.
Nedbank Property Finance is the largest commercial property financier in South Africa. In August 2018, Nedbank Property Finance extended its capabilities and opened its doors to funding opportunities in key African markets, outside of South Africa.
Over a short period, with a skilled and experienced team providing unique structuring solutions to clients, Nedbank Property Africa scooped the prestigious award for notable transactions on the continent – Top Real Estate Bank in Africa in 2019 and again in 2021.
The 2021 award was a unique achievement, as the Nedbank team was constrained with travel restrictions, which made it even more challenging to offer funding solutions to clients outside of South Africa. Travel restrictions meant funders were faced with difficulty in funding development projects that required continuous monitoring and payments for completed work at construction sites. It was then that Nedbank introduced the OpenSpace platform to unlock funding for development projects to help clients when it mattered most.
Seeing opportunity in a crisis
Usually, funders of property development transactions require an inhouse team to verify the work on site. These site inspections occur every month to monitor delivery risk (cost, time and quality elements) and to approve drawdowns or payments based on pre-agreed milestones to ensure that the money is used to complete the construction of the property in line with this scope. And because of the particular nuances of each market, loan sizes as well as the complexity and type of buildings vary for each project.
Seasoned professionals in the construction industry have always been sceptic about new technologies, and although the Nedbank Disruption team came across OpenSpace in 2017 already, the platform was not leveraged at the time.
But then the Covid-19 pandemic hit, and travel was restricted by severe lockdown regulations. Clients were impacted severely and Nedbank’s internal project monitoring teams could not access sites that did continue to operate. Without inspections, no payments could be made, which posed the risk of huge delays and additional preliminary and general costs. However, to maintain client delivery, Nedbank’s project management team resorted to doing site inspections via WhatsApp video calls. For obvious reasons, it was far from ideal, and the team needed a more sustainable and professional way to execute their function and saw the golden opportunity for OpenSpace.
When other banks could not or would not undertake development finance for clients because of the inability to monitor risk, Nedbank’s view was the opposite, posing the question: ‘In a time of crisis, how can we partner with our clients and offer them innovative solutions?’
Leveraging OpenSpace to create value for clients
The Nedbank journey with OpenSpace began by unlocking opportunities for four clients in three African countries – Kenya, Morocco and Mauritius.
Besides enabling Nedbank to pay clients on time and seamlessly by viewing photo documentation and proactively engaging with them in terms of costly change orders and potential delays, clients saw the benefit of using the Openimmediately. The ease of using the App, as well as accessibility anytime and from anywhere, gives Clients access to useful information.
Clients could simply log in to the app from their mobile devices from anywhere in the world and at any time, despite different time zones. This enabled clients to track site progress at their fingertips and to facilitate site-office communication easily using the core functionalities of OpenSpace. They could post notes and questions using the field note functionality and receive an instant response.
The time-stamped photo trails improved overall recordkeeping of on-site progress, which enhanced management reporting for clients, and the visual imagery comparisons done through a split screen functionality gave clients the ability to compare monthly progress, saving the client and the professional teams time and money.
Creating value for clients
‘OpenSpace is an incredible tool to monitor construction risks proactively,’ says Genevieve Naidoo, Divisional Executive: Property Finance PM, Valuations & Sustainability Nedbank CIB ‘Initially we were concerned about the additional cost of the platform, as property development projects are sensitive to extra costs. But the benefits far outweigh the cost of the technology in terms of saving time for professional teams. Being able to pay our clients quicker creates a huge benefit for them in managing their cash flow cycles’.
Through Nedbank’s partnership with OpenSpace, clients who take up this solution can have their professional teams up and running on the app in less than an hour, with access to support teams to assist them with any queries on how to use the app.
Nedbank plans to scale the use of OpenSpace across its portfolio, including in South Africa, where 25 sites are scheduled to use the app by the end of 2022.
Cape Town
+27 21 416 7000
Durban
+27 31 364 1111
Gauteng and Bloemfontein
+27 11 294 4444
Pretoria
+27 12 436 7000
Eastern and Southern Cape
+27 41 398 8000
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