Offices the most traded asset by volume size in 2012

Posted On Friday, 12 April 2013 09:30 Published by eProp@News
Rate this item
(0 votes)

Office buildings are the most traded assets by volume having registered 56 transactions in 2012 from 28 in 2011.

Some of the notable transactions include, the Woodlands Office Park for R2,3 billion on a 7% yield, 22 Fredman Drive in Sandton for R230 million at 8% yield, Midrand Business Park for R49 million at 10.9% yield and 308 Kent Avenue in Randburg for R56.5 million at 11.7% yield. Pretoria recorded only 5 transactions in 2012 with the inclusion of Corporate Park in Centurion for R214 million and the Absa call centre for R82,6 million.

The Western Cape Province accounted for some 22% of the office property value for 2012. Here investment activity was prominent in the Cape Town CBD where sales values of R1,6 billion were recorded for 2012. Investment activity in decentralised nodes amounted to R425 million.

KwaZulu Natal investment activity continues to be focused largely in the Durban metropol, which accounts for 4% of the national property transaction total. Despite investor demand for premium quality stock in Durban’s decentralised nodes, its lack of availability saw investment activity in the CBD where transactional values increased by 146% in 2012.

The remaining 3% of national investment activity took place in the rest of the country.

Current owners of prime investments are unlikely sellers driving the investors to consider opportunities previously regarded as secondary. This increase in demand for all grades of investment stock is driving down average yields across the nation.

Fund activity appears to have changed from large speculative pipeline developments to acquiring existing buildings due to limited business growth in the current subdued economic environment.

Last modified on Monday, 15 April 2013 07:57

Most Popular

Tshwane Regional Mall Grand Opening date set

Aug 31, 2019
  TSHWANE REGIONAL  MALL
24th October 2019, the long-awaited day earmarked for the grand opening of Tshwane…

Attacq Ltd and Tricolt break ground on Ellipse Waterfall

Aug 30, 2019
 13 2
Today Attacq Ltd the JSE listed REIT developing Waterfall City, and Waterfall Logistics…

Redefine Properties appoints Daisy Naidoo as independent non-executive director

Aug 30, 2019
 STRATE 1
Redefine Properties appoints Daisy Naidoo as independent non-executive director.

Founder Marc Wainer retires from Redefine Properties

Aug 31, 2019
 MARC WAINER
JSE listed diversified real estate investment trust Redefine Properties today announced…

Eris Property Group appoints successive CEO Barend de Loor

Aug 30, 2019
 BAREND DE LOOR
Eris Property Group has appointed a new Chief Executive Officer (CEO). Barend de Loor…

Please publish modules in offcanvas position.