SA’s housing market, already in a fragile state before the pandemic, has in recent months recorded a further slump in sales and prices. But not everyone is battening down the hatches.
Actress and radio presenter Masechaba Mtolo and her husband, Shell SA chair Hloniphizwe Mtolo, are taking a bold bet on a real estate recovery via a landmark deal in which they will become the new owners of Joburg-based Lew Geffen Estates.
The latter is the flagship enterprise founded by industry doyen Lew Geffen and his wife, Sandy, nearly four decades ago. The Mtolos are acquiring the bulk of the company’s branches in Joburg’s swanky northern suburbs, including Sandton, Hyde Park and Rosebank, as well as Bedfordview, for an undisclosed amount. The business, which employs about 60 people, will be consolidated as a mega-franchise under the broader Sotheby’s International Realty SA umbrella.
Mtolo will be running the franchise’s day-to-day operations.
She was born in Katlehong on the East Rand, and her first job was a position as sports presenter on the SABC’s Junior TopSport. At the time, she was a law student at Wits University but put her studies on hold to pursue a television career. She later landed a role as a newspaper editor on the soapie Isidingo. More recently, Mtolo hosted The Focal Point, an afternoon drive show on SAfm.
As a newbie to the real estate industry, she was initially reluctant when her husband suggested they enter the housing market. She says: "Hloniphizwe’s experience is mainly in the retail and energy sectors, so my first thought was, what do we know about property apart from the fact that we love beautiful houses?"
But Mtolo’s doubts were allayed when the couple met the Geffens. "We just clicked and there was an instant meeting of minds." What ultimately clinched the deal for the Mtolos was that the Geffens agreed to stay on indefinitely as joint CEOs of the venture to help them navigate the ins and outs of the sector. "The beauty of this deal is that it’s all about skills transfer," says Mtolo. "We are not only buying a company; we’re also getting the opportunity of a lifetime to learn from the best in the business."
Like other new entrants to real estate, Mtolo plans to intern with an experienced agent and sit for the Estate Agency Affairs Board’s professional designation examinations, known as PDE 4 & 5. "Even though I won’t be selling houses as such, I want to learn everything I can about the industry. So I’m starting at the bottom."
She doesn’t intend tampering with Lew Geffen Estates’ brand strategy, which focuses on the luxury end of the housing market. "For us to mess with the core values of such a successful brand would be murder."
However, Mtolo is keen to revitalise the company by bringing in more black real estate agents. She hopes to be a torchbearer for transformation in the real estate industry, which has been sorely lacking.
She refers to SA’s industry historically being dominated by family-owned brands and high barriers of entry. Moreover, real estate is not necessarily a first career choice among young black talent given its commission-only remuneration structure. Industry figures place the number of black estate agents at less than 20% of SA’s total tally of about 40,000.
Mtolo is unfazed by the fact that they are entering the market at a time that SA’s is experiencing one of its worst housing recessions in recent history. "The market has gone through many dips and rallies, and we’re confident there will be a recovery."
She adds: "We’re in it for the long haul. This is not about making a quick buck; it’s about creating a family legacy."
Besides, for Mtolo it almost feels like she’s come full circle — her mom worked as an estate agent many years ago for Realty 1 Elk on the East Rand.
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