Offices the most traded asset by volume size in 2012

Posted On Friday, 12 April 2013 09:30 Published by eProp@News
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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

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