Vacancies in the R4,1 billion Vukile property portfolio have been reduced to 2,9%, while Sanlam Life’s R9,7 billion property portfolio now stands at an all-time vacancy low of 1,8%.

These reductions are the outcome of Sanlam Properties’ two-fold strategy to strengthen national tenancies: on the retail side it has placed specific focus on renewing, upgrading and expanding food chains such as Shoprite Checkers, Pick n Pay and Woolworths; in the office leasing business it has concentrated on stabilizing the portfolio by canvassing, retaining and expanding lease terms with local and international blue chip companies.

The effects of these efforts are evidenced by Sanlam Properties’ 2008 results. During this period a number of leases with a total contract value of R759 million – a cumulative area of 325 000 m2 – were renewed. A further 150 000 m2 was let to new tenants; these new lettings contributed R438 million contract value across the Vukile and Sanlam Life property portfolios.

Sanlam Properties MD, Banus van der Walt, says a number of upgrade and extension projects that the company undertook on behalf of the owners at retail centres further strengthened these results. These projects include East Rand Mall (R140 million) and Mthata Circus Triangle (R83 million) in the Sanlam Life portfolio, and Phoenix Mall (R27 million), Dobsonville Mall (R17 million) and Oshakati Game Centre (N$31 million) in Namibia on behalf of Vukile.