Best Way to invest 40mil USD in South Africa

[FAQIR]

Hi All,

So I have a friend who would like to invest US$40m into property in South Africa.

Being a foreigner, he isn't too clued up with SA.

His preference is a hotel. I was thinking this is not a good option especially if he doesn't have the backing of a large international brand behind him.

Being from Durban, I was looking at other commercial property options in umhlanga, dube tradeport, and recently cato Ridge.

Also think its good to diversify the investments.

Any ideas where there would be good value for money? Doesn't have to be KZN.

 

[essop1@gp]

Would he consider investing in Gauteng, my wife is in the property sector in Gauteng.

 

[The_MAC]

I would invest in Nkandla, maybe a hotel for his children or guests, I mean if the president felt it was worth chucking in R250Mil than there must be something planned there in the future.

Serious note, what about a property development similar to Waterfall or Midstream? Century type housing development.

 

[FAQIR]

Would he consider investing in Gauteng, my wife is in the property sector in Gauteng.

I am not familiar with which part of the country has the highest returns although I would think that if there is something worthwhile it can be looked into.

 

[Beachless]

A hotel is not the best idea in my opinion I would rather invest in some other commercial properties that can be rented out.

 

[IzZzy]

Recently acted for an overseas client in the acquisition of a game farm for $33 million. Some great returns there if managed properly, whether tourism or game breeding. Bonus is you get your own private game lodge whenever you need!

 

[Billy]

Bribes to politicians offers one of the best returns in South Africa.

Or concerts for Tshwane municipality.

 

[spiderz]

Build a toll road ... the people her love them :erm:

 

[Musicmp3]

my bank account is as follows -

 

[FAQIR]

lol. thanks for all the jokes. nkandla and the gravy train politicians will be calling me soon.

So far I have got gated estates, warehouses, game farms. I also feel hotels would be out.

what about storage warehouses?

 

[AstroTurf]

Personally if I was him I would buy several houses across the country then have a large estate agency manage them.

 

[Beachless]

lol. thanks for all the jokes. nkandla and the gravy train politicians will be calling me soon.

So far I have got gated estates, warehouses, game farms. I also feel hotels would be out.

what about storage warehouses?

Commercial property where small factories/business can rent. For $40mil you can maybe even get a whole mall.

 

[Paul Hjul]

so many options, but to be honest I think you are asking the wrong questions - because the question being asked leads to an answer framed with "If I had 400 million rand how would I buy property with it" rather than going with proper due diligence. For one thing there are legislative developments to keep an eye on.

For this amount of money he surely has several points of advise in tax, corporate structuring and so on. Moreover as a US investor he needs to look at the worldwide income taxation implications that the US force onto their citizens.

With close on half a billion rand there are plenty of opportunities in the hospitality sector and if he is keen on adding some life to a beach town I have some thoughts - and plenty of value to be had - but really this is the sort of thing trusty attorneys are there for...

 

[Rickster]

Just tell him to keep the cash, why do people with loads of money always have to do stupid sh*t with it?

 

[savage]

Just tell him to keep the cash, why do people with loads of money always have to do stupid sh*t with it?

IMHO, investing your money is most certainly not stupid sh*t...

 

[Rickster]

IMHO, investing your money is most certainly not stupid sh*t...

Ive heard of lots of people who have invested their money and lost most of it.

R500 mill will last generations if used properly.

 

[Beachless]

Just tell him to keep the cash, why do people with loads of money always have to do stupid sh*t with it?

They do stupid **** to make more stupid **** money.

 

[Paul Hjul]

Just tell him to keep the cash, why do people with loads of money always have to do stupid sh*t with it?

I think you are confusing investing with gambling and binge spending

 

[Paul Hjul]

Ive heard of lots of people who have invested their money and lost most of it.

R500 mill will last generations if used properly.

to make half a billion last you need to invest it
using it properly means investing it

no investment no survival - certainly not past the second generation

 

[Mortymoose]

I believe Fire Pools are quite a hot investment at the moment..