September 23 2025 16:20
SOUTH AFRICA
Property has always been a cornerstone of wealth creation in South Africa, not only for high-net-worth individuals but also for entrepreneurs, family-owned businesses, and SMMEs driving economic growth in the real estate sector, and as such, navigating this dynamic industry requires a keen eye for opportunity while demanding expertise in compliance, structuring, tax, and strategy.
Nexia SAB&T, a trusted and reliable audit and advisory firm, has spent more than three decades helping property companies, investors, and support businesses in real estate to grow confidently while avoiding the pitfalls that can derail long-term success.
Nexia explains that the case study below explores its journey as a firm, the services it provides to the property sector, and how its advisory role has evolved to meet the needs of a rapidly changing industry.
A Firm Built for Transformation
Nexia SAB&T traces its roots back to 1994, the dawn of South Africa’s democracy. At a time when many businesses were seeking to transform and adapt to new opportunities, SAB&T was formed with the vision of building a professional services firm that could compete at the highest level while staying grounded in local realities.
In the early years, its core clients were small and medium-sized businesses, particularly those in need of audit, tax, and compliance services. Many of these organisations were family-run, community-based, or newly established enterprises trying to navigate South Africa’s evolving business and regulatory landscape. Real estate featured prominently among these clients: from small rental property owners to ambitious entrepreneurs developing residential units and commercial centres.
“Our early work in this sector gave us deep insights into the challenges faced by property businesses, insights that continue to inform our work today,” Nexia SAB&T director, Stefan Diederiks says.
“As SAB&T grew, our leadership recognised the importance of international reach. Property companies, especially those seeking cross-border investment, needed advisors with both local expertise and global connectivity. That search led us to SC International, a global accounting network that allowed us to benchmark our standards and access global best practices,” he says.
In time, SAB&T became a proud member firm of the Nexia network. This affiliation was transformative and, today Nexia is a top 10 global accounting and advisory network, giving clients the assurance that the advice they receive in South Africa aligns with world-class standards, and opening doors to collaboration with property investors and advisors across the globe.
A natural question Nexia often faces is how it compares to other accounting firms. The answer lies not in size but in focus and agility. While larger firms dominate in scale, Nexia SAB&T provides a level of personal engagement, flexibility, and client-centricity that many property businesses find invaluable.
“What truly sets us apart is our focus on the people behind the numbers. Property businesses are not just balance sheets or tax filings; they are driven by entrepreneurs, families, and communities,” Diederiks says.
“We take the time to understand the people and stories behind each client, ensuring our advice is not only technically sound but also aligned with their aspirations. By putting people first, we transform numbers into strategies that help real estate companies grow with confidence and purpose,” he says.
For SMMEs in real estate, this means direct access to senior partners, personalised solutions instead of standard templates, and advisory that reflects the realities of growing businesses with limited resources. For larger property companies, including Real Estate Investment Trusts (Reits), it means world-class expertise without unnecessary bureaucracy. Nexia’s independence and entrepreneurial spirit allow its teams to innovate and respond faster while still providing the assurance and technical depth expected of a top-tier firm.
The firm’s service offering has grown far beyond traditional auditing. It supports property companies and their support industries with a comprehensive suite of services:
Audit and Assurance: Independent audits that build investor confidence and satisfy regulatory requirements
Tax Advisory: Guidance on income tax, capital gains tax, VAT, and transfer duty, areas where real estate businesses are most vulnerable to costly mistakes
Corporate Structuring: Advice on whether to hold property in personal capacity, companies, or trusts, and how to align these structures with long-term goals
Transaction Support: Assistance with due diligence, property acquisitions, disposals, and valuations
Entrepreneurial Business Services (EBS): Tailored accounting and compliance services for property SMMEs, from bookkeeping to payroll and management reporting
Risk and Internal Audit: Helping larger companies establish effective internal controls, risk frameworks, and governance structures
Advisory for Reits: Compliance, structuring, and reporting services specific to the Reit environment
Nexia’s philosophy is simple: property businesses, like any other, succeed when their financial and compliance foundations are strong. We help build and maintain those foundations.
South Africa’s Reit regime was introduced in 2013, opening a new chapter in property investment. Nexia SAB&T quickly recognised the opportunity to support this market. Its Reit clients range from well-established players with significant portfolios to emerging trusts entering the market.
“For Reits, we provide statutory audits, tax compliance, and advisory on distributions, governance, and structuring. We also assist with International Financial Reporting Standards (IFRS) compliance, investor reporting, and navigating complex regulatory requirements. Our deep understanding of both tax law and property markets makes us a trusted advisor in this niche space,” the group explains.
The Reit environment is highly regulated, but remains a powerful vehicle for wealth creation and investor participation. By partnering with Nexia SAB&T, Reits gain the assurance of compliance while freeing up management to focus on growth and portfolio performance.
“While Reits represent one end of the property spectrum, we remain deeply committed to SMMEs, where the majority of South Africa’s property activity occurs. Many of our SMME clients are developers, landlords, or service providers, such as property managers, brokers, or contractors, who form the backbone of the real estate economy,” says Diederiks.
For these clients, cash flow management, tax efficiency, and compliance are critical. A small mistake, such as failing to declare rental income correctly or misclassifying trading profits, can derail growth. Nexia provides the guidance and systems needed to ensure compliance, reduce risk, and unlock opportunities for financing and expansion.
“In this way, Nexia SAB&T acts not just as an auditor or tax consultant, but as a growth partner,” the group says.
Addressing South Africa’s Skills Gap: The Future of CAs
No discussion of the property industry, or any industry in South Africa, can ignore the shortage of Chartered Accountants (CAs). This shortage places pressure on the availability of high-level financial skills, which property companies increasingly rely upon.
“At Nexia SAB&T, we believe South Africa does need more CAs, but not just in quantity, quality and inclusivity matter too. We invest heavily in training, mentoring, and developing young professionals, many of whom go on to serve in the property and financial sectors.,” the group says.
“Our commitment to transformation and education means we are not only meeting the current demand for skills but also contributing to a more inclusive profession. For property companies, this translates into access to a deeper talent pool of advisors who understand both the technical and practical dimensions of real estate,” the group says.
Embracing Technology: AI and the Future of Advisory
The rise of artificial intelligence (AI) is reshaping industries worldwide, and professional services are no exception. Some see AI as a threat to the future of accounting and advisory, but Nexia SAB&T views it as an opportunity.
For property companies, AI tools can streamline data analysis, automate repetitive tasks like reconciliations, and provide deeper insights into market trends. Rather than replacing advisors, AI enhances Nexia SAB&T’s ability to provide strategic guidance. What AI cannot do is replace judgment, contextual understanding, and the human relationships that underpin long-term partnerships.
“Our role is evolving, but far from diminishing. By embracing technology, we help property companies future-proof their operations and make smarter decisions in an increasingly digital world,” the group says.
Over the years, the group has seen property businesses succeed, and fail, based on how well they manage tax and compliance. Common pitfalls include:
Failing to declare rental income properly
Overstating deductible expenses without proper records
Misclassifying short-term property trading profits as capital gains
Ignoring VAT or transfer duty implications
Using companies or trusts without understanding the tax consequences
“By addressing these issues proactively, we’ve helped countless clients avoid audits, penalties, and financial distress. The lesson is clear: property investment can be one of the most powerful vehicles for wealth creation, but only when guided by tax wisdom and professional advice,” says Diederiks.
Whether it is advising a small landlord on rental income, guiding a developer through a complex acquisition, or ensuring a Reit meets global reporting standards, Nexia SAB&T’s role remains the same: to empower growth, minimise risk, and unlock potential.
The property sector is a cornerstone of South Africa’s economy. By supporting SMMEs, guiding Reits, and investing in the next generation of financial professionals, we are proud to play our part in shaping its future. As markets evolve and technology reshapes the landscape, one thing remains constant; property companies need trusted advisors, and for 30 years, that’s exactly what we’ve been.
Partner content for Nexia SAB&T
alistair@propertyflash.co.za
