These lease deals partly represent the fulfilment of a forecast that the industrial property sector finally will come out of the doldrums. The depreciation of the rand against the dollar last year was expected to make SA exports competitive in the international markets therefore boosting manufacturing activity and eventually demand for industrial space.

These lease deals eased pressure on Metboard, the Investec Property Group-managed industrial property fund, which had to deal with a relatively high vacancy rate of 9,7%. The vacancy rate rose following the integration of a newly acquired portfolio.

The group's most recent acquisitions include 24 properties purchased from Old Mutual Life Assurance Company for R195,6m and five properties from PG Wood Industries for R30m.

The vacancy rate has declined to 6,7% as a result of the deals signed in the past three months.

'We are particularly pleased with the results considering that the industrial sector has been the worst performing sector in the last year,' says Metboard fund manager Jeff Sher.

He said the group recorded renewal of lease agreements affecting a total of 51247m² with contracts averaging two to five years.

Business Day