Seeking out value - Upgrading to Parktown

Posted On Tuesday, 15 September 2015 14:41 Published by
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The latest national office vacancy estimates are marginally above 10% and in certain of Johannesburg’s northern suburbs it is as high as 12%.

In this market there are numerous A-Grade leasing options available to companies but affordable purchase opportunities are extremely scarce.

If it is A-Grade office space that companies wish to lease then they have the pick of the litter and landlords will practically fall over themselves to sign up tenants. However, buying quality corporate office space is a totally different experience with existing buildings becoming more difficult to find and rapidly increasing building costs making it progressively more unaffordable.   

The listed funds own the lion share of quality office stock and with new builds in the Johannesburg Northern suburbs being offered at between R30 000/m² and R35 000/m² there is limited opportunity for companies to move away from paying their landlords forever.

One property company is swimming against the tide by offering an attractive opportunity for those corporates looking to secure their own offices. Annapurna Capital is bringing a unique offering to the market that exceeds all the typical wish list criteria  - corporate address, a prominent location, uncongested traffic access, public transport choices, highway exposure and value.

The location of the Oakhurst offices is unrivalled. Situated on St. Andrews Road in Parktown, the property is practically on the M1 highway. “Oakhurst almost has it’s own off-ramp! Vehicular access and egress from the national motorway, Jan Smuts Avenue and Oxford Road is superb from all directions” comments Andrew Bradford, director at Annapurna Capital. “The same can’t be said for office buildings in Rosebank or most of the buildings in Sandton. The majority of mid-week traffic congestion occurs within an office node where shoppers, tourists and business commuters compete. Oakhurst’s location on the periphery of this business-only office node is a definite plus” he says.

Public transport options for clients and staff include municipal buses, Gautrain buses and popular taxi routes that are all within 300 meters of the front door. The Rea Vaya bus service along Empire Road is also within easy walking distance. Convenience retail is available in the immediate vicinity.

“This property’s fundamentals are excellent so we are embarking on a multi-million rand refurbishment. A total refurb including new lifts, air-conditioning and energy efficiency initiatives are all aimed at bringing this landmark building back to its original A-grade status” says Bradford. Over half the building has already been sold and there is strong interest in the remaining sections of between 1039m² and 4400m². The re-developed offices are very competitively priced at R14 750/m², significantly below the cost of office buildings in lesser locations.

A totally modernized building in a great location and at an affordable price will make sense to companies that wish to transition from being tenants to being owners of their office space. It is expected that potential purchasers will act now before all commercial property is in the hands of listed and private funds and the availability of these scarce assets contracts further.  

Annapurna Capital is a long-term accumulator and developer of commercial, retail, office, hospital, motor, hotel and educational properties. We target tenanted, vacant, development and refurb opportunities in sought after geographical locations.

For more information contact Andrew Bradford 082 903 4846 

Last modified on Wednesday, 16 September 2015 14:00

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