Own Your Premises: 7 Ways to Business Wealth

• Business-owned property unlocks faster, cheaper funding and stronger approval odds with tangible collateral.
• Control occupancy costs, capture appreciation, and strengthen your balance sheet with inflation-linked rental savings.
• Green, well-located industrial assets lead demand; SME alternative lending is compounding at 20%+.

The case for owning in your business

‍South Africa’s commercial real estate base is deep and resilient, with industry estimates around US$372bn in 2025. At the same time, alternative lending to SMEs is scaling fast, projected to roughly double from 2024 to 2028 (20%+ CAGR), bringing flexible capital that’s often secured against business property.

For owner-operators, buying your premises can compress risk, stabilise costs, and convert rent into equity, while improving fundability.

Why it works now

• Funding leverage: Property as collateral improves approval odds and pricing versus unsecured working-capital loans.
• Cost control: Fix your occupation cost and hedge against landlord escalations.
• Equity build: Amortisation plus appreciation grows owner equity over time.
• Tax alignment: Interest, operating costs and certain allowances may be deductible, structure with a qualified advisor.
• Strategic optionality: Sale-and-leaseback, refinance, or expansion when growth demands it.

Industry perspectives

Keke Khojane, Head of Office, Galetti Corporate Real Estate

‘Understanding the property sector is fundamental, knowing the market is your first and most important investment. The hottest opportunities are in industrial and green buildings, driven by e-commerce and sustainability.’‍

Location, close to transport hubs and cities, still sets the value curve. The savvy investor spots these trends early and positions ahead of the market.

Justine Cardoso, Financial Consultant, Paragon Finance

“Access to capital is challenging, but preparation is the edge. Master the 8 C’s of Credit - Character, Credibility, Cash Flow, Capability, Collateral, Capital, Conditions, Consistency, so funders can back the deal.”

‍Explain who you are, why you need the funds, and how you’ll repay with realistic cash-flow projections. Anchor the deal with valued security in a sensible location, put in meaningful equity, and align people, purpose, numbers, security, and timeline. That clarity wins approvals.

7 Ways forward: A Practical Playbook

1. Map demand & location: Prioritise industrial/logistics and green-ready buildings near corridors (highways, ports, urban hubs).
2. Get funder-ready: Assemble three-year financials, cash-flow forecasts, lease comparables, environmental/energy specs, and a credible repayment story.
3. Choose the right wrapper: Company, SPV, or trust—optimise for risk, VAT, allowances, and exit; get tax/legal advice.
4. De-risk the numbers: Stress-test service costs, rates, and load-shedding mitigation; model DSCR, vacancy, and capex reserves.
5. Negotiate smart debt: Compare bank vs alternative lenders; lock tenure that matches cash flows; consider rate caps where volatility bites.
6. Add resilience: Pursue green upgrades (solar, efficiency) that lower opex and may unlock better pricing/allowances.
7. Execute with discipline: Time-bound DD, fixed milestones to transfer, and a post-acquisition 12-month optimisation plan (tenanting, maintenance, refinance options).

Bottom line: Buying your premises isn’t just real estate, it’s a capital strategy. Do the prep, buy with purpose, and let the asset compound while your business scales.

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