Finding his feet after the killer wave – property icon tells all

Most people who experience career disasters do their best to move on, but businessman Rael Levitt has chosen to come clean about his life story. The SA Jewish Report spoke to him.

How would you describe yourself?

A “boykie from Bellville”.

What inspired you to write your book?

Ten years ago, my inspiration was to tell my side of the Auction Alliance story. Initially, it was a case of therapy by memoir. Then, after the COVID-19 pandemic, I noticed that many people were traumatised. So, I decided to share my story about facing adversity and coming out better on the other side.

What made you decide on the title, It takes a Tsunami?

When someone asked me what my key message was, I said, “It takes a tsunami to discover what you’re made of.” And the title was born.

How would you describe your career to date?

It’s been exhilarating, with dramatic ups and downs. Barely out of my teens, I started an auction business from the canteen at the University of Cape Town. By my mid-twenties, the company became one of the largest auctioneers in the country. By 2011, it was a well-recognised market leader, and could contend with the best auctioneers in the world. Then disaster struck. And the company, together with my reputation, was obliterated.

For five years, I didn’t do much career-wise, but I obtained two master’s degrees. In 2017, I founded Inospace, which grew rapidly and became one of the fastest-growing property funds in South Africa.

Tell us about your so-called fall from grace. What happened?

The South African Revenue Service (SARS) instructed me to sell a wine estate seized from businessman Dave King. I was accused by the highest bidder, Wendy Appelbaum, of using a vendor bidder (or what some call a “ghost bidder”) to drive up the price.

SARS wanted R75 million, so I used a vendor bidder to achieve its price. It was – and still is – industry practice. Appelbaum’s R55m bid wasn’t confirmed – it was R20m too low. The media said the deal fell through, but it was never a sale in the first place because her bid was rejected. Quoin Rock was sold to a Ukrainian billionaire for R75 million.

Nevertheless, Appelbaum was enraged because I lied about who the underbidder was.

The incident morphed into a catastrophic media scandal that came at me like a train of killer waves. The career and business I’d spent two decades building were wiped out in weeks. And it triggered a prosecutorial onslaught that lasted for 10 years. When the investigation ended, I was vindicated.

What impact did it have on your life?

It was devastating. I shut down Auction Alliance in weeks. It affected me personally and financially. I felt directionless, immobilised, and depressed.

How did the community deal with it? How did it react towards you?

It enveloped me with support, love, and guidance. From religious to community leaders, businesspeople to total strangers, I was supported. The powerful kind-heartedness of our incredible community was a great discovery.

Looking back, how do you feel about what happened during that time? Do you have any regrets? If so, what are they?

My greatest regret was lying to Appelbaum when she asked who was bidding against her. I should have explained what happened. We probably could have resolved the issue over a cup of coffee.

What got you through it and helped you dust yourself off and start all over again?

After languishing for a while, I decided to stop feeling sorry for myself. I believe that one’s life is a series of stories, so by the time I turned 50, resurrecting my career was my way of bringing a happy ending to a dramatic chapter. I focused on building a new company, based on how I wanted the book to end. It was a case of creating the story before writing about it.

How did you rise to own and manage a R3 billion property company and be a founding shareholder of LIFT airline?

My business partners knew Auction Alliance as an honest and professional company. They continued to do business with me after it was gone. I started Inospace in 2017 with the backing of Investec Bank and Buffet-KLT Investments. In 2020, my friend, Gidon Novick, asked me to invest in his start-up airline.

Did you make amends with Appelbaum, and what, if any, is your relationship like now?

We’ve never met. I saw her at the auction, and we had a brief telephone call after the auction. Since 2012, I have tried to make amends, but I’ve experienced pushback.

What lessons did you learn in all of this?

Many lessons – the most important is that we can turn things around no matter what happens. Second, I learned to be grateful, realising that no matter how bad things are, someone else has it worse. And, I learned that our greatest lessons come from our greatest catastrophes.

What drew you to the property industry?

My mom was a part-time estate agent and my dad a small-town property lawyer. I had a passion for it from 10 years old.

Looking back at the tsunami, what did it teach you?

It taught me about the fragility of life, and that too many people postpone living. We know there’ll never be a better time to live our biggest life than now because, who knows what happens tomorrow.

What does being Jewish and a part of this community mean to you, and what impact has it had on your life?

Jews are the ultimate survivors. We’ve survived while others have come and gone. Being part of a community and a religion that never gives up is seared into my identity.

Who did you aim this book at, and what do you want readers to take home from it?

There are several targets. First, in spite of the dramatic ending, I want the Alliance alumni to be proud of working at an innovative market disruptor. Second, we all have interesting stories and should share tales of triumph and disaster. Lastly, the central theme is aimed at reminding the audience that our greatest gifts come from our greatest challenges. Remarkable people have built monuments with the stones that others have thrown at them.

If you were to stand in front of a class of budding property business people, what would you want to teach them from your experience?

Be enthusiastic, be wildly focused. Go the extra mile to wow customers. See opportunity amidst seeming setbacks. Learn something new every day. And work hard.

If there’s one message you want to give the Jewish community, what would it be?

Our lives are full of ups and downs. We don’t know from day to day what to expect. Recognise and appreciate the ups, and do all you can to make the most of their momentum and magic. But, unless you’re eternally lucky, the inevitable downs will never be far away. That’s when you need all your determination, grit, tenacity, and insight to bring yourself up again and reach even higher than before. For more than a century, we’ve built a unique an incredible Jewish community, so when times are tough, we should apply this message to our communal lives.