The establishment of Investment Property Databank South Africa(IPD SA) and its decision to continue with the compilation of an annual national index for the property investment sector signifies a major step forward for investors in commercial property in this country.

This is the view of Stan Garrun, managing director of IPD SA, who says the development gives the local market access to international best practice in this field. 'We are now part of IPD Holdings' world-wide network consisting of 13 countries in which the service is provided by either wholly-owned subsidiaries, like ourselves, or partner organisations. We use the same methodologies and technologies and benefit from the international expertise that is used to analyse the investment property market in, for example, the UK, France and Canada,' he says.

The SAPIX/IPD Index was compiled by IPD for the South African Property Information Exchange (SAPIX) in the past. SAPIX was formed by 10 major property owners in 1997 and its role was to bring together its individual members into a benchmarking club and to produce an aggregated index for the industry as a whole.

'The expertise of the IPD was used, on a contract basis, in this analysis and when the contract expired it was decided that they would take over the service entirely, so IPD SA was established,' Garrun says.

SAPIX will continue to exist, as will its technical committee, which deals with issues such as quality of valuations etc. It will interact with IPD SA in an advisory role. 'Our analysis is based on information gleaned from major institutional and listed property owners in the country, covering 65% of the market,' Garrun said. 'This lends credibility to our index and makes it possible to compare investment in property to other asset classes in an objective way.' Among the other services offered by IPD SA are a portfolio analysis on property investment funds to give fund managers and investors fair benchmarks for total returns plus a full evaluation of investment strategy and portfolio quality. They also organise conferences, training and seminars, drawing on IPD's expertise; and they offer a quarterly operating costs benchmarking service.

'The commitment to South Africa of IPD, the foremost provider of property investment information in the world, is a positive development for the industry. The formation of a local subsidiary means that they have a hands-on presence here, enabling fast turnaround and flexibility in the services we provide,' Garrun concludes.

ISSUED ON BEHALF OF: Investment Property Databank South Africa. Stan Garrun 011-883-4977; This email address is being protected from spambots. You need JavaScript enabled to view it.