Have you ever considered investing outside of South Africa? Perhaps you’ve thought of Europe or even Scandinavia but did not pursue the idea further as there were too many unknowns and risks of investing in a foreign property market. One might consider that there are few reassurances that an international investor has in the abilities of the local investment managers to preserve their initial investment value.

With MytiCap the risks of the above challenges are eliminated. When you invest with MytiCap you will obtain the same position towards the Scandinavian market as if you were investing in your own local market.

MytiCap is a cooperation between South African and Scandinavian Real Estate professionals. We have a clear understanding of both markets and an extensive network that makes it possible to offer investment opportunities to investors in South Africa. These opportunities would never have been available without MytiCap’s strong local presence.

Thank you for taking the time to read about MytiCap. In the following presentation, we will present the history of MytiCap, the way we work and who we are. We hope that you find it interesting and look forward to seeing you soon.

Yours sincerely
Kathrine Heiberg, Jacques Reyneke, Lasse Brodén, Rudo Winckler

In 2014, Kathrine Heiberg* was invited to make a speech in Johannesburg about how the Reteam Group* was able to affect a turnaround of a shopping mall with many trading challenges. The members of the South African Council of Shopping Centres found her presentation so interesting and inspiring that she was invited to speak again. This resulted in the Reteam Group gaining clients, an office and an invitation from Jacques Reyneke* to become a partner in Reading Junxion – a large scale city development project on the outskirts of Johannesburg.

In 2016, Jacques met with Rudo Winckler* as they both had an active presence in Namibia. They started working together and soon realised that they were a good match, complementing each other’s strengths. Their co-operation expanded to include other development projects.

When Kathrine returned to Scandinavia in 2014 and told her partner Lasse Brodén* that they were going to develop a new city district together with a group of developers that she had just met in South Africa, he was quite skeptical – but not surprised. After travelling to South Africa, meeting the partners and viewing the property, Lasse’s doubts disappeared. Doing business is about relationships and trust; distance is secondary.

In 2017, key decisions were made simultaneously in South Africa and Scandinavia. Jacques & Rudo decided it was time to move some of their investments to Europe. Kathrine & Lasse decided to transform the Reteam Group from a consulting company into a Real Estate investment company. At a meeting for Reading Junxion, Kathrine informed Jacques and Rudo that they were going to acquire shopping malls in Scandinavia and that they had already started looking for potential investors. “Well you don’t have to look any further” was Jacques & Rudo’s reply.

And without much further ado, MytiCap came to life.

Reteam Group has a strong record of developing and effecting a turnaround of retail properties since 2001. Before the financial meltdown in 2011, retail properties were sold at a very low yield. In the same period, many tenants had a strong wish to expand and they accepted lease levels that were too high in comparison to the turnover potential.
Added to that, there has been a paradigm shift in consumer habits. The reason for visiting a retail space is no longer just to purchase goods. Instead, people are looking for community and a sense of belonging; finding that the business owners and the mall have a real interest in them. Building relationships and being relevant are key to being successful.

Many owners have difficulty developing and operating their shopping centres. They often blame poor performance on the rise of E-Commerce but that is only one factor. They simply don’t know what to do. The solution is to sell at a price that offers potential for a significant increase in value.
Even though Reteam Group has worked all over Europe, it is easier to keep a watchful eye on a property when you are locally based near the investment. Denmark and Sweden are small countries with dense population centres that provide a lot of investment opportunities.
There are two different segments of retail properties that we are interested in.
The first segment is smaller convenience shopping malls (4000 – 10 000 m2). They are often owned by local investors and have not been refurbished or extended for many years. They have been managed in a very passive manner and they are out of sync with the local population.

The second segment is larger shopping centres (15 000 – 25 000 m2). They are still more local than regional shopping centres and are still located within cities with people living and working in the surrounding areas.

With the right strategy and the right price – allowing for the needed investments – an opportunity for creating value is very good. We avoid large scale regional and super regional malls. There are already several competitive international shopping centre groups operating within this category and the competition between them keeps the yield at a level where it is difficult to make an attractive value increase.

In Scandinavia, there is a long tradition of mixing retail, office and residential space. Different kinds of activity inside the building attracts consumers and helps them to feel safe at the location. Although our focus is retail property investment, we are open to investigating opportunities if they have a component of residential or other commercial activities. In fact, if there is an opportunity to expand a project with a residential component, it makes the opportunity for value creation even better. The closer people live in proximity to a mall, the more likely they are to frequent it.

1. How to invest and get a return on your investment?

We are experts in all the factors an investor needs to consider before they invest in a foreign market.

Basic questions may include:

• How do I transfer money to Scandinavia?
• How do I get my money back?
• Where and how much tax do I need to pay?

Please note that we have an extensive network of experts that we consult with should you have any other questions related to taxes and fund-structure.

2. How to get approved as an investor by a financial institution in Scandinavia?

We know what it takes to be accepted as an investor in Scandinavia. Banks and mortgage institutions are generally reluctant to finance projects for investors they are not familiar with. The last 10 years has seen an increase in rules and regulations designed to reduce the risk of money laundering and other kinds of fraud. The demands imposed by the regulations on banks are time consuming. If you are not known by the bank and a resident in Denmark or Sweden, the bank will prefer to not have you as a client.

But Kathrine and Lasse have been doing business in Scandinavia for more than 30 years and count European banks amongst their clients. The banks have engaged in our projects and together with them, we have defined a framework that enables the banks and mortgage institutions to finance MytiCap investment projects.

3. How can I be assured that the investment opportunities are attractive and have potential?

Reteam is known for its ability to develop and successfully implement turnaround strategies for shopping malls and city districts in Scandinavia for the last 20 years. Reteam has analysed more than 200 locations, reviewed thousands of lease contracts and has interviewed more than 25 000 consumers. Most professionals in the Real Estate industry in Scandinavia know that it is almost impossible to disguise a challenged property as an attractive opportunity for Kathrine & Lasse.

Secondly, Jacques and Rudo will analyse each opportunity from a South African perspective. Even though they frequently travel to Scandinavia and understand the market, they are still outsiders and will question every aspect that does not seem logical, or imposes risks, routines and habits that could be changed for the better.

Finally, MytiCap also personally invests in each project, depending on the nature of the project and how the investment is structured. MytiCap will always have a shared interest in the investment along with you with the hopes of increasing the value as much as possible and making sure that it will contribute to a sustainable cash flow.

4. How can I be sure that my investment is being taken care of and is developed according to the strategy?

As described above, MytiCap has a shared interest that the investment does not lose value. Reteam has extensive experience in the development of shopping malls. As such they are well equipped to assist, coach, and control the operation of assets.

MytiCap is never far away from you. Rudo and Jacques are located in Gauteng. This makes it easy to arrange a personal meeting or to participate in investor meetings with regular updates of what has happened and of what is being planned for each asset.

MytiCap has a strong development team. The team has many years of experience in:

• Developing retail and residential properties
• Obtaining/changing local zoning
• Developing master plans
• Identifying, negotiating, and managing the right suppliers and construction companies
• Leasing empty and new premises

MytiCap will develop a comprehensive strategy for the property before any decision is made. The strategy is based on the Reteam system; a special methodology of collecting and handling data, developed and executed by Kathrine and Lasse. The Reteam System is the reason that Reteam has been engaged in more than 200 shopping centres across Europe as consultants. From 2001 to 2018 Reteam has affected a turnaround for shopping centres that otherwise were doomed to the “Dead Mall.com” category.

The financial oversight of MytiCap development projects will be taken care of by Rudo and Jacques. They have insight in how financing works in South Africa and Namibia as well as in Scandinavia. They have a no-nonsense attitude when it comes to financial institutions and tax structures. Having operated in South Africa during good and bad times has taught them how to be solution orientated in a difficult economy. They understand the key elements that secure long term financial success. MytiCap relies on a group of local advisors and suppliers for expertise in any areas where additional expertise is needed.

Financial asset management

The most common usage of the term “asset manager” refers to investment management, the sector of the financial services industry that manages investment funds and segregated client accounts. Asset management is part of a financial company which employs experts who manage money and handle the investments of clients. From studying the client’s assets, to planning and looking after the investments, all things are looked after by the asset managers and recommendations are then provided, based on the financial health of each client.

Infrastructure asset management

This is the integrated, multidisciplinary set of strategies in sustaining public infrastructure assets such as water treatment facilities, sewer lines, roads, utility grids, bridges, and railways. Generally, the process focuses on the later stages of a facility’s life cycle, specifically maintenance, rehabilitation, and replacement.

Asset management specifically uses software tools to organise and implement these strategies with the fundamental goal of preserving and extending the service life of long-term infrastructure assets which are vital underlying components in maintaining the quality of life in society and efficiency in the economy. In the 21st century, climate change adaptation has become an important part of infrastructure asset management competence.

Enterprise asset management (EAM)

This involves the management of the maintenance of physical assets of an organisation throughout each asset’s lifecycle. EAM is used to plan, optimise, execute, and track the needed maintenance activities with the associated priorities, skills, materials, tools, and information. This covers the design, construction, commissioning, operations, maintenance and decommissioning or replacement of plant, equipment, and facilities.

Public asset management

Public asset management expands the definition of enterprise asset management (EAM) by incorporating the management of all things of value to a municipal jurisdiction and its citizens’ expectations. An example in which public asset management is used is land-use development and planning.

MytiCap Asset Management Services (“the Manager”) include the following:

• To exclusively identify and research potential investment opportunities and make recommendations to the Investment Company (“the IC”) Board from time to time concerning the investment of funds by IC or the disposal of any investment of the IC;
• To manage the portfolio(s) for and on behalf of the IC in accordance with the aims and objectives of the IC and the applicable Management Agreement;
• To provide assistance to invested companies (as the Manager deems appropriate or as reasonably requested by the IC Board from time to time);
• To provide the IC with such investor relations services as the IC Board may reasonably request from time to time.
• To ensure the continuous execution of facilities and property management services for the total Portfolio of properties under its management in terms of the applicable Management Agreement as entered into for various portfolio acquisitions from time to time.

Kathrine Heiberg
CEO & Founder and Owner of Reteam Group Partner & Co-founder mind16.com
Mobile around the clock +45 2991 5089
Kh  (at) reteamgroup.com

Jacques Reyneke
Mobile +2772 611 2064 | +2712 361 3200
Fax +2712 361 5227
Jacques (at) rer.co.za

Lasse Brodén
President & Founder and Owner of Reteam Group Partner & Co-founder mind16.com
Mobile around the clock +46 708 421 888
Lb (at) reteamgroup.com

Rudo Winckler
Mobile +27 81 844 4147
rudowinckler (at) icloud.com

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