Unlike many other metropolises of the world, Johannesburg — the most advanced city on the African continent — owns few skyscrapers in Sandton, the heartbeat of its financial district.

Sandton Skye, an award-winning investment, is one of them. Having started construction in July 2013, its first phase has sold out and is proving hugely popular. Within walking distance is another iconic business complex The Central, which has already commenced digging of the basement. Occupying three hectares, the site has already attracted leading law firm Werksmans to relocate their Johannesburg head office. Both properties happen to belong to one proudly Chinese enterprise, China Railway International Group (CRI).

The luxurious Sandton Skye is the benchmark in property investment. These sophisticated one- and two-bedroom apartments as well as spectacular penthouses are designed to create a high tenant desirability in the market place and ensure the investor capital growth. The construction of Sandton Skye has created hundreds of much-needed jobs for the city, pays tens of millions of rand in rates and taxes, while helping secure the company’s cash flow.

Having been one of the first luxurious residential properties of its kind at the time, opening for sales when construction was still under way, the project looked quite risky. The confident and determined Fred Wen, the Director (Deputy CEO) of CRI-Eagle Investment, says that it was as a result of the market research they had done. According to their survey in 2010, the population in Sandton would increase by 300,000 by 2016, with mainly white-collar and senior executives, who would be in great need of high-end residences. “So we took the risk, and it turned out to be a wise choice,” says Wen.

While CRI expected to achieve 50% sales in two years, and to finish construction by 2015, the sales performed much better than anticipated. The sales were achieved within a year and the construction was completed a year ahead of schedule.

Wen shares his tricks of the trade. “CRI offers a range of purchase options designed to maximise investment, whose customers not only buy to live, but also to let and to sell. As an investment product assured of delivering long-term growth, Sandton Skye also collaborates with local estate agencies to ensure competitive rents for its investors. The project has attracted much envy for CRI among its local competitors. Seeing it leading the way, similar properties are built to share the benefits.”

Besides Sandton Skye and The Central assuming their rightful places at the pulsing epicentre of Sandton, CRI’s debut in the South African high-end market, Eagle Canyon, situated in Roodepoort, has consistently performed as a top 10 South African golf estate.

CRI entered the South African market in 2006 to pursue its high-speed train project connecting Johannesburg and Durban, but saw an opportunity and shifted to the real estate industry when it was in decline.

CRIpartneredwithlocalcompanies such as Investec and Eagle Canyon and established joint venture companies in co-developing projects featuring high quality lifestyles, which could grow in leaps and bounds.

Even though CRI’s expertise is in construction, this Fortune 500 global corporation is bound by various regulations as a foreign developer. It has to rely on local expertise throughout the process from design, construction and sales to safety management. CRI interacts with their local partners in the whole developing process, sacrificing part of the profit to adapt to the local industry norms. It also spends a high percentage of its project management fee on law consulting and it plays by the rules.

“You can’t cut relevant expenses, because you can’t afford to take risks. We basically regard ourselves as a native developer and do as the Romans do,” Wen says.

Wen speaks highly of the South African market, saying it is operating in a relatively dynamic, healthy and sustainable way. He values the middle-class group in Africa as well. “They are pretty active, even as active as those in Asia and they are contributing to the high-end consumer culture, purchasing houses, automobiles and luxury goods.”

According to a Deloitte report, Africa’s middle class has tripled over the past 30 years, and is expected to grow to 1.1- billion people by 2060, accounting for 42% of the continent’s population.

As Wen reveals, CRI are to invest in Zimbabwe’s real estate. With a young team, and Wen in his early 30s himself, CRI are planning to take root on the African continent, striving towards becoming a Chinese pioneering enterprise in the local property investment market. 

(The story was originally published on Business Day on December 2nd, 2015.)