JHI Properties consultancy forms JV with law firm, Glyn Marais
The rapidly growing consultancy arm of JHI Properties and law firm Glyn Marais have formed a joint venture in regard to the provision of property due diligence for retail and commercial properties nationally and throughout the African continent.
Comments Elaine Wilson, senior manager consulting and research for JHI Properties: “JHI consulting specialises in providing a broad range of property services which includes not only research, nodal analysis, strategic plans and feasibility studies but also comprehensive property due diligence. To this extent Glyn Marais complements our skills by providing the legal expertise, and by combining our capabilities and experience through a JV we are able to provide a full spectrum of due diligence services – including legal due diligence, which previously we were compelled to sub-contract.”
“As commercial property usually represents a significant investment, due diligence is extremely important and generally is required when clients are looking to acquire or sell commercial property. We have already been involved in a number of high profile acquisitions, which includes Menlyn Shopping Centre and The Arcades in Zambia,” says Wilson.
Glyn Marais was recently involved in a legal capacity in the country’s biggest single property transaction to date – the sale of prime global tourist attraction the V&A Waterfront for R9.7 billion.
Says Brian Frank, director of Glyn Marais Inc and head of the firm’s commercial property department: “The legal due diligence of property plays a key role in any property transaction not only in determining the true value of the asset, but also avoiding any unpleasant surprises later on regarding land claims or environmental issues .”
“Legal due diligence incorporates a number of factors which include: checking and reporting on conditions of title of the land; mortgage bonds, deeds of hypothecations*, restrictions on alienations and other encumbrances on the land and its usage; environmental conditions and restrictions; and employment contracts.”
Adds Wilson: “From JHI’s perspective due diligence covers a host of services from research and analysis of the location and commercial market to optimisation of space, correct tenant mix, strategic planning and comprehensive lease audit reports, building condition assessment and service agreements, among others.”