December 19 2024 16:00
SOUTH AFRICA
Retirement can be an exciting and fulfilling time of anyone’s life. It provides an opportunity to spend your time in glorious outdoor areas while you live in homes designed by skilled and experienced architects and bold property funds. But finding a well-suited retirement estate itself is not necessarily easy as many developers have entered this area of real estate in recent years. One group which bucks this trend is Oasis Life, the operator of top-notch retirement resorts in the Western Cape.
Launched in 2018, Oasis’ estates are developed by Rabie Property Developers, one of South Africa’s most respected real estate groups. This independent property development company has created an assortment of estates, mixed-use developments and other impressive additions to Cape Town and its surrounds. Founded in 1978, Rabie’s impressive track record is nearing on 50 years.
Oasis Life, which has been led by CEO Glyn Taylor since 2023, is focussed on ensuring the best-in-class offerings to the residents in its estates.
“Life rights has gradually become the status quo of retirement living in the Western Cape which drove our group to create resorts which offer a range of benefits and reimagine what the Baby Boomer generation believes retirement should be,” Taylor says.
Life rights are a means of buying the right to live among a retirement community for the rest of your life. The purchaser does not own the property, but instead has the legal right to live in the unit until they pass away or choose to leave. This model is popular in developed markets and is regulated in South Africa. The resident is able to enjoy similar privileges to a freehold purchase without the on-going liabilities of management, maintenance and upkeep, in exchange for asset appreciation. In addition, the resident has access to a range of services, including various levels of healthcare.
Some benefits of life rights include that there are no transfer duties, no bond registration fees or VAT payable. Life rights are often more affordable than alternative senior living options and the heirs of the estate are guaranteed a buy-back on the property.
Buying a Life Right is different from buying a property. Instead of owning the residence, as an appreciating asset, you gain the lifetime legal rights to live in your home while an estate manager such as Oasis Life retains ownership and responsibility for it.
“This means all the properties and resort facilities remain in its care, allowing us to manage the retirement village carefully to protect everyone’s interests. It allows retirees to live an independent and flexible lifestyle free from maintenance concerns and other uncertainties,” says Taylor.
If a resident ever relocates or ends the Life Right Agreement, the original purchase price minus remarketing costs will be paid to them or their estate.
The process of acquiring a life right works like this. The owner of the property grants the housing interest (life right) over its property to the life right holder. This person acquires the housing Interest (life right) in exchange for an interest free loan in favour of the owner.
The loan can be paid by a life right holder or a third party. The occupant of the property in the estate can be the life right holder or their tenant. There can be two life right holders such as a spouse or partner.
The key point is that the housing interest grants the life right holder a real right to use and occupy the property for the duration of their lifetime.
A life right can be cancelled in a number of situations. This is when the life right holder decides to move out due to illness or deteriorating health. It can also be cancelled when the life right holder passes away or the last nominated occupant passes away; in the case of a spouse or partner. The right may be cancelled when the owner markets and alienates the housing interest in respect of the property to a third party or if the loan amount paid by the new life right holder is for more than the loan amount paid by the existing life right holder. In this case the owner refunds the loan amount, less specified deductions, to the existing right holder, holder’s estate or the payer.
Taylor explains that to excel in the retirement estate industry with an attached life rights model, prospective purchasers need to understand how complicated and costly the operational side of the business can be. Life Rights require a strong balance sheet as a life right development is focused on long-term earnings.
Each Oasis Life estate creates a carefree lifestyle in environments where security is paramount. The estates are pet-friendly and are complemented by natural green spaces which these animals and their owners can enjoy.
“There is no reason why retirement living should not include houses which are not only modern, but they are also managed by the best professionals in their fields,” says Taylor.
Taylor brings years of hospitality experience to Oasis Life, having managed some of Africa’s best hotels and game lodges.
“We guarantee professional hospitality, healthcare, 24-hour security, and top-notch facilities so that the people in our communities can live with the peace of knowing they made a great decision choosing to retire with Oasis Life hassle free,” he says.
Oasis Life’s estates are either standalone or they form part of other Rabie developments. Projects include Oasis Life Clara Anna Fontein which has 126 houses, Oasis Life Burgundy Estate which boasts 153 houses, 106 cottages and 66 apartments and will be 325 front doors once complete and Oasis Life Constantia with its 63 apartments and 45 houses.
“We have just begun civil work with Oasis Life Sunningdale. Phase one includes 56 homes and once completed, will have 150 front doors,” says Taylor.
“We have been blessed in the past six years with wonderful communities in our developments. We believe that if you manage a living space well, you will attract the right people to it,” he says.
“Strong factors have fuelled demand for staying at our estates. There has been a perfect storm with semigration to Cape Town, the baby boomers reaching retirement age, and even Covid-19 accelerating demand. When people started to choose to work remotely from 2020 and more so in 2021, they started to move their parents to our estates. This has all created strong communities who we are proud to serve. We remain positive and are looking for suitable opportunities to increase our footprint,” he says.
Oasis Life is able to support its residents with 24-hour private security as well as on site medical professionals. Residents enjoy access to fun activities like wine evenings and tai chi.
Retirement resorts are still in their infancy when being viewed as an asset class. Oasis Life are a group which are filling this gap and gradually the market is realising how much value they can generate for investors and the market.
“The developers aren’t involved in the Life Right businesses, therefore they don’t walk away from each development. Why this is pertinent is that the developer develops with the future in mind, and therefore doesn’t cut corners to drive development profit, which makes them attractive as we know our estates well. We have to ensure that they thrive,” Taylor says.
Looking forward into 2025, he and his team are confident of Oasis Life’s continued success.
“We just sold out Oasis Life Constantia and several retirees have registered their names with us for further opportunities or for when a Life Right becomes available, which shows that the confidence in our brand extends from the northern to the southern suburbs of Cape Town. We also launched phase one of Oasis Life Sunningdale and it’s doing well with 40 of the 56 keys sold,” says Taylor.
Oasis life’s residences are also attracting foreign buyers and “swallows” who stay in summer. SA offers a strong private healthcare system with shorter lead times than the UK for example.
Four pillars of excellence cement Oasis Life’s commitment to its residents and the success of its business. These are lifestyle security, healthcare security, financial security and physical security.
“We work to guarantee our residents these four foundations and everything attached to them so that they can enjoy the wonderful years with us. You levies include everything from mowing the lawn to painting the house, to physical security. You know what your financial cost is as it never rises and you are guaranteed quality healthcare,” Taylor says.
“We are here to serve and are committed to maintaining a strong brand and reputation,” he says.
Oasis Life will maintain a 40-year-view as it rolls out more developments.
“We are excited about the Western Cape’s and our business’ future. We need our municipalities to continue to succeed and to assist with world-class infrastructure. We see the pent-up demand for quality retirement living and have put R2bn into the ground so far and will continue our aggressive acquisition approach into each village and are always looking for opportunities,” Taylor says.
Partner content for Oasis Life
alistair@propertyflash.co.za
