In the vibrant university town of Stellenbosch, afriPROP was appointed to conduct a financial and development feasibility study for a proposed student accommodation project.

Challenge

An established guesthouse in central Stellenbosch was listed for sale as a going concern. Our client, looking to expand his property portfolio, sought afriPROP’ expertise to evaluate its potential for conversion into student housing and to verify the financial assumptions presented by the selling agent.

Solution

afriPROP conducted a comprehensive due diligence process, analysing acquisition costs, projected yields, and long-term financial viability. Early figures appeared promising, reinforcing our client’s enthusiasm to proceed.

However, through deeper investigation and independent verification, we uncovered inconsistencies and inaccuracies in the information supplied to the market. This rigorous analysis enabled us to present a balanced, evidence-based perspective, ensuring our client made a fully informed decision.

Outcome

Based on afriPROP’ findings, the client chose not to proceed with what ultimately proved to be a high-risk investment. Our market insight, local knowledge, and structured assessment process safeguarded the client from significant financial exposure and potential loss.

Summary

afriPROP’ meticulous approach ensured every detail was examined and verified. By combining sound financial analysis with in-depth local expertise, we protected our client’s capital and upheld the principles of responsible, informed investment.