The Central Business Districts of South Africa are being reviewed by long-term property asset holders – traditionally constituting banking and financial services institutions – this after more than a decade of poor returns.
JHI Real Estate’s latest SA Property Report, highlights that more recently certain investors and owners have been prepared to take a different approach to CBD investments and this is opening doors to a host of new opportunities, such as the bidding for the “Better Building” initiative, the numerous residential conversions underway and institutions reviewing their commercial investments in CBD’s.
Though residential conversion activity has tended to dominate the headlines in Cape Town and Johannesburg in particular, this re-adjustment is now impacting positively on the commercial property environment more broadly.
This has been evidenced by recent sales to the value of R7,7 million of landmark Johannesburg CBD buildings, with a lettable area of 34 000m2. According to Don Mercer, investment sales broker of JHI Real Estate, who concluded the deals, Mansion House, Century Insurance Building, The Markade, President Brand Building and the Daitz Building have all been purchased by a Pretoria Property developer. They intend refurbishing the interiors and creating mixed-use retail, office and residential space.
“JHI has a long history with some of the buildings - the Century Insurance building was developed by JHI in 1951 for Century Insurance, a UK based company and similarly, they were involved in the development of Mansion House in 1956. This was JHI’s head office for 40 years, until their move to Rosebank in 1990. JHI will continue to manage all five buildings, for the purchaser.”
Mercer concludes that opportunities abound throughout the CBD and more acquisitions are expected to follow.
ENDS
Issued by: Rosemary Roberts of JHI Real Estate Ltd
011 441-0339 or 082 776 9555
6 June 2004
Publisher: JHI Real Estate
Source: JHI Real Estate
