Building a new life under Table Mountain

WILD GEESE: EMIGRANT BUSINESS LEADERS ON OPPORTUNITIES ABROAD:Martin Kearns, chief executive of property company Eurocape

MARTIN KEARNS is a rare breed when it comes to Irish property developers these days.

When talking about the industry, he uses words like “exciting” and “optimistic” rather than the more downbeat assessments one gets about the business from the majority of his Irish peers.

But then Kearns, who is originally from Ballyhaunis, Co Mayo, is referring to property development in South Africa rather than the beleaguered industry in Ireland. He is chief executive of Eurocape, an Irish-owned property development and investment company.

“The past 18-24 months has seen us coming off a substantial boom here, so everything began to slow down, with vacancies increasing and new tenants harder to come by, but the business is still a lot more exciting and resilient here than in Ireland and most of the EU, although there is a way to go before things return to pre-recession levels,” he says as we sit in the boardroom of the company’s head quarters in downtown Cape Town.

Kearns has been in South Africa since early 2004 where, among other things, he has overseen the €100 million development of Mandela Rhodes Place: a hotel, spa, and mixed-use lifestyle centre in Cape Town city centre; and the Taj Cape Town Hotel.

He says moving to Cape Town with his wife, who was expecting their first child at the time, was an easy transition, despite the cultural differences that exist and the country’s chequered history when it comes to race relations.

Today he is “well-settled” in his home beneath Table Mountain with his wife and two young boys, both of whom were born in Cape Town and attend local schools.

“I had lived overseas for 10 years, working on projects in Hong Kong, China, Indonesia and Australia, before returning to Ireland in 1999, so I know what it is like to live abroad and what works in terms of getting to grips with it.

“It was a huge gamble for me and my wife, whom I met whilst living in Hong Kong, to come over, but we were restless in Ireland and you just have to take a chance sometimes.

“We find the best approach is to immerse yourself completely in the local culture. Far too many people leave Ireland physically, but mentally they stay put – as in they hang out in Irish areas once abroad and dream of home – and that will never work if you want to integrate into a new community,” he says.

Another reason for Kearns’s successful transition to South African life, he believes, is the similarities between the property development business in South Africa and Ireland.

Many of the laws and business practices that guide and regulate the industry here are relatively similar to those in force in the Irish marketplace.

That has been hugely beneficial when it comes to starting a new business abroad.

“The industry here is not dissimilar to Ireland: there are some legal differences and the banks are more conservative, but in general, things like construction contracts and leases are much the same. So if you are experienced in property development, it is not difficult to adapt.

“On the plus side, the local business culture is very proactive and rarely have I encountered a situation where obstacles have been put in our way when we are trying to do business.

“The only downside really is that Cape Town people can be very laid back, so their work ethic can be a bit lacking,” Kearns adds.

“It can be very frustrating but, once they get used to the working environment we operate, they are very good to work with.”

Kearns is adamant that if they are willing to work hard, Irish people inclined on taking up opportunities in South Africa can get along very well because of their work ethic.

“Engineers, project managers and finance people are always sought after by municipalities, as there is a skills shortage in many sectors,” he says.

“There are also opportunities in renewable energies and agri-business too.

“However, one area that needs to be addressed sooner rather than later is a person’s legal status in the country, as eventually it catches up with you.

“If a person can, they should get their visa sorted out before they travel to South Africa,” Kearns stresses. “It can be done here but it makes it more difficult to compete in the job market against locals who will be favoured because of the need to get South Africans working.

“Also, smaller companies and employers may not wish to get involved in the whole process of sorting out work permits with the Department of Home Affairs.

“The main thing is to get the situation resolved so that you can avail of any opportunities that come your way.”