9 May 2024 by PropertyWheel.co.za
CBRE Excellerate, leading international commercial real estate advisory firm in Africa and the Middle East, has launched www.cbre-x.online (‘CBRE Exchange’), a real estate marketing platform which enables investors to conclude a sale digitally, from start to finish.
The first online sales tool to successfully incorporate Blockchain in a commercial real estate transaction, cbre-x.online was built on the foundation of the South Africa Property Exchange (SAPX), the former online real estate investment agency best known for its exclusive portfolio listings for the likes of the PIC and Delta Property Fund and the local adaption of UK tech-enabled property investment agency, Singer Vielle. On the unwinding of SAPX, CBRE Excellerate purchased the exclusive usage of this technology in South Africa.
“The goal for cbre-x.online is to be the preferred marketplace in African commercial real estate by making the sales process more efficient and well governed. cbre-x.online is essentially a network of investors who have access to a cutting-edge platform that keeps them up to date on investment grade opportunities in Africa. It is not just a fancy marketing site with Blockchain; we have ensured that the user experience is consistent which is important when it comes to PropTech,” says Craig Hean, MD of Advisory and Transaction Services at CBRE Excellerate.
Built on the principle of a seamless marketing experience, cbre-x.online allows investors to access details of listed assets for sale, before requiring an email address or registration. Only if an investor wishes to access or download in-depth information about an asset, are they required to provide their personal information. Once an investor has registered in compliance with POPI regulations, they join an international network of approximately 4,500 members currently on the platform, gaining access to a comprehensive data room of information, walk-throughs, videos, photos and all the due diligence information required to make an offer on an asset.
Through clicktopurchase®, innovative transactional technology, an investor signs a Non-Disclosure Agreement (NDA), adheres to the standard KYC and FICA regulations, and once approved by CBRE Excellerate, they can proceed with making an offer. If the offer is accepted, a digital sales agreement is created.
Unlike the UK for example, where purchasers can digitally sign a property sales agreement, South Africa’s law prohibits this through the Alienation of Land Act. As part of the sales process, purchasers give CBRE Excellerate power of attorney to physically sign the documentation on their behalf.
“Commercial real estate transactions fail as a result of accepting non-binding offers to purchase,” says Fabio Nava, Director, Capital Markets at CBRE Excellerate. “There is so much risk in this manual process and we want to disrupt it. With cbre-x.online, incorporating clicktopurchase®, a full audit trail from registration through to submitting a purchase offer is recorded and time stamped in a unique Blockchain ledger that is fully accessible to the client, leaving zero room for anyone to dispute an offer on a property. This is going to be a maverick because cbre-x.online is going to change the way in which South Africa transacts in commercial real estate.”
While cbre-x.online intends to digitize the entire commercial real estate sales process and to shift the market from the traditional sales environment, it is important to note that the Blockchain technology does not sell the assets and the platform is reliant on human interaction.
“We recognise the role of professional commercial real estate advisors in sales transactions, particularly the more complicated deals. cbre-x.online allows our transaction advisors to be more efficient in how they manage a large database of investors. It is about using the power of technology to make the sales process better governed and more efficient,” notes Craig.
“cbre-x.online is about bringing sophistication and transparency to the commercial real estate market. As a REIT, pension fund, or any listed fund who wants to dispose of an asset and where governance and compliance play a huge role, cbre-x.online is the game changer. We are bringing the international way of thinking to the local market; South Africa first and then Africa,” concludes Fabio.
