Safland: Providing a holistic property service solution

“The Safland journey began in 1992 when my wife Mirinda and I started the company as a ‘one-man-show’,” says chief executive officer Kallie van der Merwe. “At that stage, Mirinda and I weren’t married yet. It took us many years – 20 to be exact – to make the move to Namibia. But since 2011 we have been headquartered in Windhoek. So we’ve been here for more than ten years, and we’re also celebrating our 30th wedding anniversary this year,” he said.

Their thirty-year history is a story of significant growth, challenges and triumphs.

How things started

“My story is probably as bland as the rest. I had a burning desire to make something of my life, but I didn’t know where to start. I didn’t leave school with a fantastic vision; I wasn’t a strong student. And yet things happened and I found myself on a certain path. At one stage I was a promotions manager when I met someone who was involved in property and I just liked the idea. I started as an estate agent, which didn’t last very long. But it did get me started in property and I began developing, which tickled my interest.

“We started as a property brokering house but soon evolved into a property development company. In 1999 we did our first in-house development. Back then we were mostly involved in the motor and retail trade in South Africa. And then we moved to Namibia.”

He said that Safland Namibia was appointed as the fund manager for the Frontier Property Trust (GIPF Mandate), and they began developing properties. “The first one was the big one - the Grove Mall of Namibia together with our partners at the time, Demushuwa and the Atterbury Property Group. At the same time we were involved in the development of Gwashamba Mall in Ondangwa, and the Otjiwarongo Town Square.”

Around 2014 they established SafColl together with Collins Properties in SA, and through this, they developed the Rundu Mall, the Gobabis Mall, and the Mega Centre next to Grove, which was followed by The Steps office development, which incorporated Virgin Active and Town Lodge.

“The Safland of today is much different from before. I think there is a misconception that we only do our own developments. We actually have numerous clients in Namibia, and our service lies in development, property and project management, facility management, and a host of other services to businesses and individuals,” Van der Merwe said.

Property development

Safland has always been a commercial property developer with retail property being its field of expertise. Safland identified specific needs with regards to retail centres within Namibia and literally filled these gaps. Safland regarded Namibia as an underserviced market at the time and its aim was to develop the dominant centre in every relevant town.

Van der Merwe said that it is a misconception that Safland owns all the properties that they developed. However, to date, they have completed 11 property developments with a gross asset value of approximately N$3 billion.

Looking ahead, Safland is currently working on three new developments: A distribution centre and two retail malls.

Given the current economic environment, Safland is performing well, especially in rural towns. “I believe we have been through the worst, Covid included, and we should see slow but steady growth in the economy going forward. The government and businesses in Namibia have learned a lot during the last number of years and most will avoid costly mistakes of the past.”

Generally, Safland did not experience a large increase in vacancies, mainly due to site selection, their dominant strategy, a strong tenant mix, and quality management. However, struggling tenants were assisted through rental adjustments on a case-by-case basis during Covid.

Asked whether Namibian property prices and rentals are overpriced, Van der Merwe said that it is not the case at all. “It however wasn’t the case pre-2016 when the country was in a property bubble that only burst later than the rest of the world. Yet the cost of serviced land is excessive and that makes home ownership very hard, especially for first-time buyers.”

Sharing advice

“When we arrived here, people said to us that we had become successful very quickly. Actually, we had a standing joke that it took us 20 years to become an overnight success. But the reality is you can’t simply break into a market – it’s a process. When and where do you start? The answer is NOW. Start immediately; take your first step. Don’t listen to all the naysayers.

“Most importantly, if you want the secret to success, it is a desire. That’s what you need. It’s a small, big word. You need to have a picture in your mind about where you want to be, take that first step and make the commitment.

“My wife and I always had this dream of hospitality, and that’s when Droombos happened. Unfortunately, it was mere months before Covid. But now we’re farming with herbs here and I’m as passionate about farming with herbs as I am about Safland. There are always new challenges, many of which take us to places we never would have considered before. The important thing is to keep walking – I call it the Johnny Walker effect.

“If you start working for someone, try to be the best employee. If you don’t excel in what you’re doing for someone else, you’ll find it very difficult to excel in your own business,” he concludes.