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African real estate has unique drivers for growth 

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Global megatrends will drive growth opportunities in the real estate industry across the African continent: PwC report

Global megatrends, such as rapid urbanisation and demographic changes, will drive growth opportunities in the real estate industry across the African continent over the next five years. “The pace of change in the world is accelerating, with a series of transitions, known as global megatrends, transforming the way in which business and society operate,” says Ilse French, Real Estate Leader for PwC Africa (http://www.pwc.com).

 

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(PwC Global Real Estate Leader, Kees Hage)

 

“More and more, investors around the world are seeing the growth potential of Africa, in particular its substantial demographic edge. Economic growth, improving political stability and ongoing investments in infrastructure are opening up previously inaccessible markets.” adds French.

 

Two publications recently released by PwC consider the drivers for real estate growth in Africa and highlight existing and emerging trends in African real estate that are shaping the ‘African opportunity’ for investors.

 

PwC’s inaugural publication entitled Real Estate: Building the future of Africa considers the impact of global megatrends on the African continent. The aim of the report is to provide an assessment of the current state of the real estate industry across Africa and demonstrate how the megatrends will drive growth opportunities in key African markets.

 

The report also considers the real estate market in ten selected countries in sub-Saharan Africa (SSA). These country profiles provide insight into the local, regional and global influences on the real estate markets of individual countries, providing an illustration of the effects of the trends being felt at a national level.

 

The report shows that the opportunities across the African continent are significant and span every sector. In almost all markets the demand for high-quality retail, office and industrial space continues to outstrip supply as international and local occupiers respond to new economic opportunities. Huge shortfalls in residential property across the continent will give rise to private investment on a grand scale.

 

Furthermore, a lack of local funding for infrastructure projects provides a platform for new private partnerships with the public sector. Shifting demographic trends and changes in consumer behaviour are also likely to create a huge demand for new and different real estate by 2020 and beyond.  According to the report, we will also see the entry of more specialist investors into the market.  Projected forecasts of 20% net annual returns from investing in shopping malls, office blocks or industrial complexes in countries across the continent continue to draw in new investors.

 

Among the findings of PwC’s report, the following eight drivers for growth were identified:

 

  1. Africa’s young population will drive the demand for real estate and different types of real estate. Across Africa there will be continued urbanisation, an expansion of current cities and the rise of new cities.

 

  1. Industrialisation will continue across Africa and will be accompanied by a rapid growth in the retail sector.

 

  1. The export of natural resources and agriculture will remain key sources of economic growth, but will expose certain countries to increased risk.

 

  1. Infrastructure shortages will create opportunities for investment.

 

  1. The influence of government policy and legislation on the decision to invest will increase, while local partnerships will become increasingly important.

 

  1. Continued advancement within pension fund, stock exchange and banking regimes will facilitate investment, and an increased range of investors will drive demand for real estate investment opportunities.

 

  1. Technology will impact business and building practices, as well as consumer behaviour.

 

  1. Sustainability will become entrenched in building design and occupier requirements, with Africa’s most ambitious countries changing city design and building practices.

 

When considering these drivers of growth it is also important to note that there are specific risk factors underlying the development of Africa. These include the impact of political instability and changing government policy; complex legal regimes; the volatility of local currencies; and the timeframe of investments and restrictions on possible exit strategies.  Despite these risks, real estate investors and developers continue to see the African market as a huge opportunity.

 

French says: “It would be easy to underestimate the impact of global megatrends on Africa. After all, Africa’s real estate markets have traditionally lagged behind developed and many developing economies. Levels of investment in real estate in Africa are low by a global standard, while significant challenges exist in exploiting potential opportunities.

 

“However, our research suggests the impact of global megatrends on Africa will be huge. This will create a diverse range of opportunities for the real estate industry Africa – opportunities that often differ from those available in more developed markets.”

 

The global impact of these trends are supported by the findings of a second report, Global Emerging Trends in Real Estate® 2015, which is an annual forecast of global real estate investor sentiment published jointly by the Urban Land Institute (ULI) and PwC.

 

The report, based on the views of senior global property investors, identifies several ‘megatrends’ affecting markets around the world, each of which has implications for development and investment: increasing urbanisation (the majority of the world’s population now lives in urban areas); demographic and social changes (including a significant rise in the number of older and elderly people); technology advancements; the rise of economic power in emerging markets (due largely to an expanding middle class); and climate change.

 

PwC Global Real Estate Leader, Kees Hage, says: “There is a wall of capital targeting real estate opportunities in many markets across the globe. The search for better yields has taken some investors into development and secondary markets, moving them up the risk curve. But investors must strike a balance between the need to deploy capital and the ability to achieve good returns, at a time when there is such a difference in the economic conditions across the globe.

 

“Real estate investors have a wide range of issues to consider when making investment decisions. What is clear is that they may have to approach those decisions in a completely different way in the future. Capital allocations may need to be made to a wider range of asset types than ever before, ranging from retirement and student housing to data centres and self-storage.”

 

Also for the first time Africa is included in the report. The report provides insight into of the current African real estate sector by focusing on the key markets through a series of interviews with leading players in the industry who provide their views and outlooks on the investment climate.

 

Some key themes emerge from the interviews held which include:

 

  • The listed sector in Africa – Interviewees noted that the listed property sector in South Africa has shown excellent performance, with 26.6% total returns. The listed sector in South Africa has demonstrated huge growth and now has a market capitalisation of just over R350bn, having being boosted by an influx of capital following the introduction of REIT legislation in 2013. The listed real estate sector in South Africa is now close in value to the corresponding sectors in Singapore and Hong Kong. However, there are a limited number of REITs sufficiently liquid to attract foreign investment, while the unlisted real estate market is dominated by South African institutions.

 

  • Challenges of investing in Africa – Interviewees indicated that the size of available investments may not match the demands of larger institutional investors, who require substantial investments to enter the market. Investments to the value of US$20-30 million are common and provide opportunities for investors looking for high returns for this level of investment, like family offices in Europe. Interviewees also noted the significant development risk and timeframes which must be considered when investing in Africa.

 

  • Finance in Africa – Securing finance in South Africa is not viewed as a problem, but elsewhere in Africa interviewees indicated that this provides difficulties for investors. Across the rest of Africa, the finance market is dominated by a small number of financial institutions requiring equity investment of up to 50% to secure finance for developments. This presents opportunities for overseas debt providers to enter the market in support of regionally based developers and investors.

 

  • The impact of megatrends on Africa – Trends observed by interviewees include the continued impact of urbanisation, with the observation in South Africa that some small towns are being marginalised as large metropolitan areas develop. Developers are careful about the size and number of retail developments over the short term, with five-year planning horizons providing time for consumer spending habits to develop to keep pace with increasing supply.

 

French says: “As real estate investors around the world are faced with the challenge of finding value and returns at a time when core property is becoming overpriced in almost all markets, Africa is now of increasing interest. We believe African real estate has unique drivers for growth, as highlighted in the two reports released by PwC.”

 

Distributed by APO (African Press Organization) on behalf of PricewaterhouseCoopers LLP (PwC).

 

 

About PwC:

 

PwC (http://www.pwc.com) helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 195,000 people who are committed to delivering quality in assurance, tax and advisory services. Find out more and tell us what matters to you by visiting us at www.pwc.com

 

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please seewww.pwc.com/structure for further details.

 

Contacts:

Ilse French: Real Estate Leader for PwC Africa

Office: + 27 11 797 4094

Email: [email protected]

OR

Jocelyn Newmarch: Account Manager: Edelman, South Africa

Office: + 27 11 504 4000

Mobile: + 27 84 462 1111

Email: [email protected]

OR

Sanchia Temkin: Head of Media Relations, PwC

Office: + 27 11 797 4470

Email: [email protected]

 

SOURCE 

PricewaterhouseCoopers LLP (PwC)

 

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Former Blizzard CEO Mike Morhaime announces new game company

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Two years after stepping down as CEO at Blizzard, the game company he co-founded in 1991, Mike Morhaime is back with his next venture. It’s called Dreamhaven, and it’s a combination of a publisher and developer, with “a common goal to empower creators, help bring their ideas to life, and create original gaming experiences that foster meaningful connections between players.”

As part of the announcement, Dreamhaven also revealed its first two internal studios: Moonshot Games and Secret Door. Moonshot is headed by a trio of Blizzard veterans, including former Hearthstone lead Jason Chayes, StarCraft II director Dustin Browder, and Hearthstone creative director Ben Thompson. “Though it’s very early days, when we think about Moonshot, we imagine a studio that celebrates curiosity and courage,” Chayes said in a statement. “We aspire to be bold in our approach, and we think the best way to do that is to create a culture centered around trust.”

Secret Door, meanwhile, is similarly led by a team of former Blizzard developers, including Chris Sigaty (executive producer on Hearthstone), Alan Dabiri (technical director on Warcraft III and StarCraft II), and Eric Dodds (designer on World of Warcraft and Starcraft). No projects have been announced for either studio.

Morhaime stepped down as CEO of Blizzard in 2018, though he stayed on in a consultancy role until last year. In an interview with The Washington Post, he said that one of the goals of the new company was to build an environment focused on creators — something that was likely a challenge under Activision, which became Blizzard’s parent company in 2008.

“We’ve learned a ton about what goes into creating an environment that allows creators to do their best work, and we were very successful doing that for many years at Blizzard,” Morhaime told the Post. “We reached a crossroads where we reassessed what we want to do with the rest of our lives.”

Source: https://www.theverge.com/2020/9/23/21452256/former-blizzard-ceo-new-game-company-dreamhaven-morhaime

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Apple Loop: Shock iPhone 12 Details, Massive iOS 14 Problems, Macbook Pro Delay

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Taking a look back at another week of news and headlines from Cupertino, this week’s Apple Loop includes surprising iPhone 12 benchmarks, big problems with iOS 14, two new iPads, Apple ignores MacOS, the “good/better/best” of the Apple Watch, the controversy around Apple One, and the Macs’ never changing system System Preferences.

Apple Loop is here to remind you of a few of the very many discussions that have happened around Apple over the last seven days (and you can read my weekly digest of Android news here on Forbes).

Just How Fast Is Your Next iPhone?

We might not have seen the iPhone 12 family as part of Apple’s virtual September launch event this week, but we have seen the benchmarks pop up on the AnTuTu website. That gives us a raw comparison of the numbers from last year’s iPhone to this year’s. Philip Michaels reports some pretty shocking numbers:

“Leaked benchmarks from Antutu, purportedly showing off an iPhone 12 Pro Max’s performance, may help fill in some of the blanks. MySmartPrice spotted the leaked numbers, which claim to show off a device with 6GB of RAM and 128GB of storage running iOS 14.1.

“According to the leaks, the iPhone 12 Pro Max tallied a score of 572,333 on Antutu’s test, which is a 9% gain over the iPhone 11 Pro Max’s 524,436 result on the same test. MySmartPrice says the iPhone 12 Pro Max’s reported tally would be the highest score ever posted by an iPhone, which you’d hope given that it’s a new model.

More at Tom’s Guide.

The Big Problem With iOS 14

Apple may not have announced a release date for the iPhone, but it did announce the release date of iOS 14. And that has caused problems. Normally Apple will provide a week’s worth of ‘heads up’ time to Developers so they can ensure their apps are ready for the jump up to the next major version of iOS. Not this year… developers had less than a days notice, and they are not happy. Matt Binder reports:

““Gone are the hopes of being on the store by the time users install the new iOS 14 and are looking for new apps. Gone is the chance to get some last-minute fixes into your existing apps to make sure they don’t stop working outright by the time users get to upgrade their OS,” explained Steve [Troughton-Smith from High Caffeine Content.”

““There are some developers who have spent all summer working on something new, using the latest technologies, hoping to be there on day one and participate in the excitement (and press coverage) of the new iOS,” he continued. “For many of them, they’ll be incredibly upset to have it end like this instead of a triumphant launch, and it can dramatically decrease the amount of coverage or sales they receive.””

More at Mashable.

Take Two Tablets And Call Your iPhone In The Morning

Taking the flagship spot away from the ‘missing presumed having a good time’ iPhone 12 was Apple’s new iPad Air. Beating the smartphone as the first device with Apple’s new A14 ARM-based processor. Samuel Axon and Jim Salter report for Ars Technica:

“The iPad Air gets the new A14 Bionic CPU, built on 5nm process technology. It’s a six-core CPU with two high-performance cores and four lower-power, more efficient cores for simpler background tasks. The A14 Bionic offers a 30 percent GPU performance boost compared to previous generations, and Apple says it puts up double the graphics performance of typical laptops.”

As well as the increased power, 2020’s iPad Air has a new design; USB-C has been added, the bezels have been trimmed away, the home button has been removed, and TouchID has been integrated into the power button. It;s not the only new iPad, as the entry-level iPad moves up rom the A10 to the A12 Bionic processor. Benjamin Mayo reports:

“The jump from A10 to A12 means Apple’s cheapest iPad will feature the Neural Engine for the first time. Apple says the A12 chip offers more than twice the performance of the top selling Windows laptop, 6x faster than the top-selling Android tablet and 6x faster than the best-selling Chromebook.

“The 8th-generation iPad keeps the same price as the 7th-gen: that’s $329 for general sale and $299 for education.”

More at 9to5Mac.

Will Mac Owners Be Satisfied With Safari After macOS Delay?

If you were waiting for MmcOS Big Sur to drop for your Mac or MacBook, then you are out of luck. Apple’s event saw updates to iOS, iPadOS, tvOS, and watchOS… but macOS has been delayed. The ‘Big Sur’ release is still in the future, but a small crumb (perhaps from a cookie) has been handed to Mac fans in the form of Safari 14, presumably to offer cross-OS support with other devices. Juli Clover reports:

“Safari 14 brings improved performance, customizable start pages, a Privacy Report to see which cross-site trackers are being blocked, and a new tab bar design that provides tab previews so you can see what you have open at a glance. Today’s update also removes Adobe Flash.”

More at MacRumors.

The Apple Watch Strikes Three 

Two new Apple Watch models were launched, and as the Apple Watch Series 3 remains, there is now a low-, a mid-, and a high-level smartwatch in the classic triplet that Apple was once famous for. Todd Haselton looks over the Series 6 Apple Watch for CNBC, including the headline ‘wellness’ features:

“The Series 6 also has Apple’s most advanced sensors. You can run the ECG app for an electrocardiogram, for example, a feature that’s not on the Apple Watch SE or Series 3. It’s also the only model with the new blood-oxygen app. I tried that and it told me my blood oxygen was 96%, which seems good.

“…Apple is careful to explain that this isn’t a medical device. You can use it if you’re curious about your blood oxygen when you’re hiking at high altitudes, but Apple isn’t making any promises about detecting low oxygen should you fall ill with coronavirus.”

Meanwhile, Apple has brought the ‘SE’ brand to the Apple Watch, again with the promise of a cheaper ‘mid-range’ slice of hardware that still delivers the core Apple experience. Chris Velazco has spent some time with the wearable to try and work out where it fits into the portfolio:

“For one, the SE uses the same S5 system-in-package (or SIP) that we got in last year’s Series 5, which in turn contains the same dual-core processor as the Series 4. Meanwhile, Apple has confirmed that the SE has the same compass and always-on altimeter as the Series 6, along with a very similar screen.

“From what I can tell, it’s the same bigger display we got in the Series 5, just without the always-on functionality enabled. And while the Series 4 was the first Apple Watch to come with heart-sensing ECG support, you simply don’t get that here. Ditto for the Series 6’s new blood oxygen measurement features.”

More at Engadget.

Bouquets and Brickbats For Apple One 

Also announced alongside Apple’s hardware, and perhaps an indication of where Apple wishes to focus on the future, were new options for the various subscription services offered by Cupertino. Apple One takes the popular options and bundles them together while offering a discount. Brian Heater reports:

“It’s not quite mix and match yet, but there are three pricing tiers. Individual offers Apple Music, TV+, Arcade and iCloud for $15 a month. The Family version will get you those four services for $20 a month. For the hardcore, there’s the $30 a month Premier tier, which bundles iCloud, Music, TV+, Arcade, News+ and [the new service] Fitness+.“

“For those who have been putting off a given Apple subscription, such a bundle could certainly sweeten the pot — and make it even harder for users to escape the pull of the Apple software ecosystem.”

More at TechCrunch. Given Apple’s market position, using one service to pptentiallybolster another through a bundle has drawn the eye of the competition. Spotify – which has already filed an anti-trust complaint with the European Commission against Apple – drew attention to the issue shortly ager the end of the event.

“Once again, Apple is using its dominant position and unfair practices to disadvantage competitors and deprive consumers by favoring its own services. We call on competition authorities to act urgently to restrict Apple’s anti-competitive behavior, which if left unchecked, will cause irreparable harm to the developer community and threaten our collective freedoms to listen, learn, create, and connect.”

More on the Spotify statement at Apple Insider.

And Finally…

The look of the MacOS user interface has evolved since OSX was announced in 2000. One area has stayed relatively contestant, but the small changes highlight the thinking behind the OS over the years.

“The interface started glassy and skeuomorphic, mimicking the materials used on Macs. Over the decades, it went through significant revisions. One thing that seems to have remained relatively unchanged over the years is the System Preferences screen.

“But, at a closer glance, we’ll see that this mundane part of the operating system has changed quite a bit and hides some fun easter eggs and surprises.”

Arun Venkatesan has taken a closer look on his blog.

Apple Loop brings you seven days worth of highlights every weekend here on Forbes. Don’t forget to follow me so you don’t miss any coverage in the future. Last week’s Apple Loop can be read here, or this week’s edition of Loop’s sister column, Android Circuit, is also available on Forbes.

Source: https://www.forbes.com/sites/ewanspence/2020/09/18/apple-news-headlines-iphone-12-benchmark-specs-launch-dates-ipad-air-apple-watch-se-ios-14-macos-macbook-pro/#2f5105752c07

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Apple reportedly acquires VR startup ‘Spaces’

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Apple has now acquired another startup, Spaces, which has a team specialized in virtual reality technologies (VR). The acquisition was announced today by a Protocol report citing its own sources.

Spaces was created in 2016 by DreamWorks Animation veterans, and the startup has been developing VR products since then, including a Zoom add-on that allowed users to hold virtual reality video conferencing using animated avatars.

The company discontinued all its services last week without further details. The official Spaces website just mentions that the startup is now “heading in a new direction.”

Thank you to our users and partners who participated in our awesome VR video conferencing product and the many people who enjoyed our VR location-based entertainment attractions found at theme parks, theaters, and more.

According to the Protocol report, both Apple and Spaces did not immediately respond to a request for a comment on the acquisition. The price paid by Apple on the Spaces startup is also unknown.

While it’s not certain that the team behind Spaces will join any VR related project at Apple, rumors suggest that Apple is working on AR and VR headsets for 2021 and 2022. Bloomberg says the headset will reportedly feature high-resolution displays and a “cinematic speaker system,” which should make it difficult for the user to notice the differences between real life and the virtual reality experiences the headset will provide.

As Apple continues to invest in its ARKit and new features such as the LiDAR scanner in the new 2020 iPad Pro, it’s plausible to expect that all of these technologies will be merged into a new product to offer advanced augmented and virtual reality capabilities.

Source: https://9to5mac.com/2020/08/24/apple-reportedly-acquires-vr-startup-spaces/

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