Posted On Tuesday, 22 July 2003 02:00 Published by
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The recently-announced interest rate reduction - coupled with the fact that several further decreases are anticipated in the near future.
The recently-announced interest rate reduction - coupled with the fact that
several further decreases are anticipated in the near future - should
increase business confidence and provide some relief for the business sector
in general, says Peter Golding, CE of Golding Commercial Properties - a
member of the Pam Golding Property group.

"Hopefully this will be of particular benefit to retailers - particularly
small entrepreneurs who are among those most adversely affected by the high
cost of capital. Many retailers have experienced reduced turnovers due to
the high interest rates and consumers' reduced spending capacity. Those
situated in shopping centres have been under considerable pressure
financially as in many cases their rental agreements would have been signed
a few years ago when rentals amounted to somewhere in the region of 10
percent of turnover," he says.

"Of late rentals due have been taking a substantial bite out of their
income, having been more in the region of 15 to 20 percent of turnover or
even as much as 25 percent, and with landlords not always in a position to
make concessions to their tenants.

"The far more positive scenario - with predictions of several prime rate
cuts over the next year - should see these disparities drop and create
better yields for businesses through increased consumer spending. With
renewed optimism in the business sector it should provide a much needed
boost for small and medium size businesses, which in turn should impact
favourably on the property sector through increased take-up of both retail
and office space.

"It is hoped that several further interest rate reductions will stimulate
significant growth in this sector and also see more entrepreneurs coming
onto the market, encouraged by the lower cost of capital. Now is undoubtedly
a good time for businesses to consider investing in their own commercial

"It's also a time when opportunities exist for those considering investing
in retail property. Having anticipated an upturn in the retail property
sector and with our specialised retail knowledge - especially of the
selected shopping centres which we currently have on our books - we are well
placed to provide potential investors with key advice on trading diversities
and turnovers."

Playing a key role in GCP's core focus on creating value for property owners
is Chris Immelman, who heads up GCP's broking sales division, who has been
involved in prominent developments such as Grand Central Shopping Centre in
Cape Town's CBD, Portswood Square at the Waterfront and Alphen Park in

A recent addition to GCP is newly appointed PR and marketing manager, Gayle
McArthur, who has extensive retail experience, having been involved in
projects which include: Long Beach Mall, Steenberg Village, West Coast
Village shopping centre and the Simonsrust Shopping Centre in Stellenbosch.

Publisher: Golding Commercial Properties
Source: Golding Commercial Properties

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