The property division has taken great interest in areas earmarked as economic development zones as well as in township economies. The focus is on property developments and investments. The greatest concern is in deriving great returns and maintaining income generating assets.
1. Property Developments
Property developments which Black Key Capital are interested in are both commercial and residential.
Imbali Development in Collaboration with Eduze Capital
Eduze Square will be a vibrant mixed use development that serves as the commercial and social heartbeat of Imbali which is the biggest township in Pietermaritzburg, KZN. The precinct is set to have both residential and commercial space available for letting made up of shopping and entertainment, a medical centre, banking and financial services, gym and fitness centre, open air informal traders market and an area allocated for local small scale businesses.
The Maluti development is nestled in-between Harrismith and Clarens in the Free State. It is a mixed development which will compromise of residential houses and apartments, a private clinic, shopping mall, boutique hotel, wedding venue and children's entertainment park.
2. Property Investments
The property investments which Black Key Capital undertakes are both short term and long term and again are commercial and residential.
In the short term Black Key Capital invests in capital flips. These investments in capital flips are high risk, high reward and short term. They are generally cash purchases which involve quick offers and are value creating.
We focus on acquiring primarily distressed properties that are essentially listed or selling for a discount to market value. Distressed properties are those that are either physically in poor condition or one where the seller is motivated and seeking to sell on an urgent basis. We then do the necessary work wether its renovating or modernising the properties to meet market standards.
Commercial and Residential Rentals
Our long term investment strategy is to invest in both commercial and residential properties which we would subsequently rent out. The company looks to capitalise on both long term and short term earnings and growth. Our strategy is driven by the fact that globally housing is becoming a larger proportion of individuals income expenditure and in turn the need for rental spaces is high.
As part of the long term investment strategy we will purchase land identified in areas that prove to have high demand and future growth and potential. This land is kept for future sale or for future developmental use.
Black key Capital has established a business platform that allows us to source, acquire and entitle land. We employ a strategic systematic approach to buying land, adding value to generate risk adjusted returns. Our focus is to reduce the risks in the investment transaction and only when the risks are comprehensively understood do we allocate investor capital. Our land investment funds make allocations across multiple properties and multiple markets, thereby providing a diverse and balanced portfolio of investments.
3. Strategic Partnerships
Our company realises the role and value of strategic and collaborative partnerships in the local property industry. To this extent, the group actively seeks and invites interested companies who have the relevant need or expertise to participate in acquisitions for direct ownership (as well as joint ownership through joint venture partnerships).
These include partnerships with established players in the sector as well as recently established and emerging property development companies. Partners are carefully selected based on their ability to convert opportunities into bankable projects and operational capability.