Upward sales spiral for central Marconi Beam business park.

Posted On Monday, 17 February 2003 10:01 Published by
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THE 5.6ha, 26 erf Omuramba Business Park at Marconi Beam bucked the sluggish trend in the industrial market in 2002.

THE 5.6ha, 26 erf Omuramba Business Park at Marconi Beam bucked the sluggish trend in the industrial market in 2002.

It has been the best- performing of such parks in the Western Cape in recent years, says Steve Lovemore, CEO of Lovemore and Co, a partner with Rabie Property Projects and Cavcor.

Lovemore said to date 40 000m2 of the available erven at Omuramba Business Park had been sold for about R15 million, leaving 13 000m2 for sale.

'We launched in 2001 and Brink and Heath finished the civils during 2002. The take-up rate has been very satisfactory for a business park in the present, not too exciting commercial and industrial property environment,' said Lovemore.

Full sell-out, he predicted, would be by June, pointing out that the reasons for the fast sales are 'clear to anyone who follows what is happening in the Cape property market'.

'Firstly, there is a demand, which we can very definitely satisfy at Omuramba Business Park, for clean, prestigious premises with an upmarket ambience.

All the buildings at the park have been of a high architectural and building standard and have been complemented by landscaping that covers some 10% to 15% of the site.

'Secondly, the position is excellent: industrialists are increasingly reluctant to have their transport waste time in congested traffic - but Omuramba Business Park links in via Koeberg Road with the north and via Omuramba/Ratanga Drive with the N1. It could hardly be in a more central position.

'Thirdly, we have ample parking within the park - four bays per 100 m2 for the office component and one bay per 100m2 for the industrial space.

'Fourth, buyers are able through my company to get a turnkey solution to their needs. We design and build - at a saving of about 10% on the usual more fragmented way of doing things.

Some ten investors and owner-occupiers have already worked with Lovemore and Co in this way at the park.

'Fifth, the going rate for erven of R300 per m2 is competitive and is in fact inexpensive for an upmarket project of this kind. The land is in reality a small proportion of the total development cost and we bring our expertise to the table to reduce the design and build cost.

'Sixth, the security on the project is excellent and is always an important requirement among buyers.

'Finally, there is now a determination among industrialists to avoid rentals which escalate annually and are no longer at rock bottom levels.

Rentals, which have been in decline for the last two years and are likely to increase dramatically to match the inflation suffered by the construction industry.

Purchasing will in the near future be a considerably cheaper prospect than paying rent, and clients will be looking to make their premises part of an appreciating asset base. In the first three years a buyer may have to pay a premium to do this - thereafter the benefits will be significant.'

For details call Steve Lovemore at 021 510 6720.


Publisher: Weekend Argus
Source: Weekend Argus

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