Grass roots stuff

SRI property - views from a jeans and t-shirt operator

Aggressive movement is the order of the day when it comes to SRI (socially responsible investing) property investments as an asset class, and it appears that the Futuregrowth community property fund is aiming to double the fund size, from R573m, while returns are at 20% for the last two years.

They claim to partner retailers. It's not just about providing the facilities. It's about getting the retailers into the outlining areas, says Anabel Chesters, MD of Abvent Asset Management, a jointly owned business between Futuregrowth and PIC.

There has been an expansion from the banking and retail sectors and products (property) are being tailor-made for the consumer in the disadvantaged areas.

The process is very stringent and has led to the solid returns. As asset managers they also claim to be very different. Because they do these investments and developments themselves, they get to grass roots and get involved.

In terms of social impacts, there is a section 21 trust in the North West province, which impacts on the NGOs in the region, as it has taken up the slack as local government has extracted themselves from involvement there.

Income yields are low for the general listed retail property sector, at around 8%, while the Futuregrowth property fund is doing 11% yields.

Health warning: This article doesn't provide advice.

Editor's thoughts:
* It appears that SRI can make a difference to the communities where the investment takes place, and at the same time the investors are satisfied.