The power of co-ownership in international real estate investment
Thought Leadership: by Geoff Jennett, CEO of Emira Property Fund
The power of co-ownership in international real estate investment
We have long recognised the immense value of collaboration at Emira Property Fund. The real estate industry is traditionally dominated by sole-ownership-centric strategies, but we believe that co-ownership offers a smarter, more risk-adjusted approach to international investing. Our offshore investment journey — first into the United States and then into Poland — has reinforced this belief.
Co-ownership is not merely about shared ownership; it is about shared expertise, shared risk, and shared opportunity. It allows us to leverage the strengths of our partners, navigate local market complexities, protect against the downside and execute deals more effectively than if we were operating alone.
Learning from our US experience
Our entry into the U.S. market was not only a successful investment but an insightful exercise in understanding the true benefits of co-ownership. While practical challenges such as time differences and travel logistics exist when operating in this market, these are minor compared to the strategic advantages we gained.
Had we pursued a direct ownership model, we would have faced significant hurdles, particularly in acquiring quality centres and then the negotiations with funders and major national tenants. The reality is, when a local business leader with long-standing relationships in the market picks up the phone, doors open more readily than they would for an unfamiliar South African investor. Our partners in the U.S. brought these critical relationships to the table, ensuring greater access to opportunities, more effective negotiations and superior deal-making outcomes.
Some may argue that establishing an in-country team could achieve the same effect. However, in an incremental investment strategy like Emira has for our US investments, building such a team too early is costly and inefficient. Rather than assembling a high-salaried team for a relatively small initial portfolio, we opted to partner with an established expert, ensuring cost efficiency, immediate market penetration, and lower initial risk exposure.
Expanding the model to Poland
Having seen the tangible benefits of this strategy in the U.S., we confidently scaled our co-ownership approach in Poland. However, this was not simply a replication of our U.S. strategy; rather, it was an evolution of it.
The Polish opportunity was fundamentally different: rather than acquiring individual assets one by one with in-country partners, we took a stake in an existing company with a substantial portfolio of 37 developed assets. This gave us immediate scale, access to an established management team, and deep-rooted local expertise — all without the lengthy and costly process of building a presence from scratch.
Moreover, Poland presented unique challenges: language barriers, unfamiliar banking relationships, and a tenant landscape we were not well-versed in. Here again, co-ownership proved invaluable. Our partners in Poland have naturally mastered these intricacies, enabling us to function as experienced market players from day one.
The true meaning of collaboration
Many assume collaboration is about working together harmoniously, but in reality, it is about working effectively, even when differences exist. In co-ownership, partners will not always be perfectly aligned in approach, style, or execution. What matters is a shared commitment to the outcome and a
structure that enforces true partnership.
At Emira, we firmly believe that for collaboration to be effective, all partners must have genuine skin in the game. This means sharing the risks and rewards equitably. Our structures ensure that if we profit, our partners profit; if we lose, they lose too. This balance creates a powerful incentive for all parties to make sound, strategic and long-term decisions.
Our model is not just theoretical—it is structured into our investments. Our co-ownership agreements ensure that our partners assume at least the same or greater degree of risk as we do. Their commitment is real, tangible, and embedded into the deal structure.
The risk-adjusted return advantage
Beyond the strategic benefits, co-ownership also enhances our risk-adjusted returns. We do not need to take on 100% of an asset’s risk to benefit from its potential upside.
For instance, in the US, our joint ownership of open-air power centres allows us to access nonrecourse debt over each asset at favourable interest rates—terms that would have been far less attractive if we had entered as a standalone South African investor. Our partners’ established credibility in the market played a crucial role in securing these financial advantages.
Similarly, in Poland, rather than attempting to outmanoeuvre local specialists, we leveraged their expertise to secure a profitable position in an already successful business. This ensured that our entry was strategic, measured, and positioned for growing success.
The bigger picture: co-ownership as a competitive edge
Some sceptics have questioned why South African funds risk offshore opportunities rather than focusing exclusively on domestic investments. For Emira, the answer is simple: We are not attempting to outsmart investors native to foreign markets — we are partnering with them.
By aligning ourselves with on-the-ground specialists, we are not only reducing risk but also improving our access to deals, market knowledge, and operational efficiency. Rather than adopting a rigid, onesize- fits-all investment approach, we tailor each deal to the opportunity at hand.
The strategic advantage
Co-ownership is not about compromise; it is about optimisation. It is about recognising that success in global markets requires humility—acknowledging that local expertise is an invaluable asset and that working collaboratively yields superior results.
At Emira, we take pride in our collaborative mindset — not just in our international investments but also in our domestic market. Our partnerships investing in Enyuka, Transcend, and The Bolton officeto- residential conversion are just a few examples of how we have successfully embraced coownership.
As we continue expanding our international footprint in the US and Poland, our co-ownership model will remain a cornerstone of our strategy. It reduces risk, enhances returns, and unlocks greater expertise. Doing business this way is also more enjoyable. When like-minded people who are committed to the upside, yet all face the downside consequences, gather around the table, you arrive at better solutions. It makes the journey not just more successful but also more rewarding and fun.
The real estate industry is full of players determined to control every aspect of their investments. At Emira, we believe in a different approach. We do not need to own everything outright to achieve success; we need to own the right pieces, in the right way, with the right partners.
And that, we have found, makes all the difference.
Released by Catchwords for:
Emira Property Fund
Geoff Jennett, CEO
Tel: 011 028 3115
Emira.co.za
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