Old Mutual Property fund listing still 'on track'

Posted On Tuesday, 10 May 2011 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Old Mutual Property says that market conditions in the listed property sector have been favourable.

OldMutualOld Mutual Property said on Monday that market conditions in the listed property sector were favourable, although the potential upward cycle in interest rates and electricity tariff hikes were a concern.

Speaking at the site visit to phase two of the Zone @ Rosebank in Johannesburg on Monday, Gary Hardisty, fund manager at Triangle Real Estate Core Fund, said the fund was set to list on the JSE this year, as scheduled, although he would not disclose the specific time frame.

"There is a lot of activity in the property space, judging by some recent new listings," he said.

"Our concern, though, is the potential rise in interest rates and electricity tariff hikes, which would eventually negatively affect the tenant and consumer."

Old Mutual Property had put in place energy efficiency measures to assist tenants and landlords, with the objective of absorbing "increasing energy costs in the medium term in SA", Hardisty said.

"We have set up building management systems, which help them manage peak periods and normalise usage throughout the day."

He added that the company was engaging Eskom on efficient lighting systems.

Meanwhile, Old Mutual Property had set aside a total of R1.5 billion worth of investment for Zone @ Rosebank.

The company had committed R1.1 billion to extend the Zone @ Rosebank retail and entertainment centre, which was now complete.

The other development, which was still under construction, related to the the construction of Mutual Square, which incorporated Game Store.

Hardisty said the fund aimed to develop an office block to the tune of R400 million, although this depended on finding tenants. This project was set to start next year.

Last modified on Wednesday, 20 November 2013 09:58

Please publish modules in offcanvas position.