CAPE TOWN ENJOYS SURGE IN DEMAND FOR PREMISES AMONG SMALL AND MEDIUM SIZE BUSINESSES BASED ELSEWHERE

Cape Town is enjoying a marked increase in interest among businesses based in Johannesburg, Durban and overseas, wishing to open either new businesses or branch offices, reports Nadia Razis, leasing and sales consultant at Pam Golding Commercial, a member of the Pam Golding Property group. She says overseas businesses perceive South Africa - and Cape Town in particular - as a cost effective hub in which to operate.

"There's a definite surge in interest and we have recently successfully concluded a number of leases and sales for premises in various areas of Cape Town, from a variety of different types of businesses and entrepreneurs. The bulk of these are for relatively small to medium sized operations, and most of the leases are for periods of one to three years as they intend expanding to larger premises in the near future, which is a positive indicator. The rates for leases range from around R30 to R55 per square metres, which represents good value for money," says Razis.

In Kloof Street in the Gardens area, a Netherlands based company which provides on-line educational business programmes for an international clientele, has leased space, with the intention of expanding in a year's time, while another USA based company with a branch in Johannesburg, providing on-line programmes for industrial management systems has also leased premises in the area. A third company dealing with satellite tracking in Africa has taken a small space in the same area with the intention of expanding. They are attracted by the scenic views, central location, sound infrastructure and facilities in the area, as well as the lifestyle.

Says Razis: "We have other buyers, also in the film production business, seeking character space on the outskirts of town in areas which include Gardens, Green Point and Sea Point.

"There's currently a great deal more interest in Woodstock, where buyers are looking to acquire character properties at attractive prices and convert to suit their needs. Owner/occupiers have realised the investment potential of this area, where prices range from an affordable R2 500 per sqm. This is compared with prices of new or existing developments in the CBD and outskirts or in Steenberg, close to the upmarket residential area of Constantia, where prices range from around R5 500 per sqm to R8000 per sqm."

Razis says in the Cape Town CBD, where the rejuvenation process is well under way with buildings being resold either to develop or as an investment, the demand is high and stock is less freely available. She has just concluded a lease at 106 Adderley Street on behalf of a trade union, and has sold two sectional title units priced at R430 000 each - one to an owner/occupier and the other to an investor, at business park, Roeland Square.

PGC says the Southern Suburbs of Cape Town are also seeing a strong demand from small and medium sized businesses, seeking both up-market corporate buildings and cottages . A financial services group is about to rent about 260 sqm at the prestigious and highly sought after Terraces in Steenberg Office Park at R81 per sqm plus VAT .

Other leases concluded range from an aromatherapy business in Wynberg to a Johannesburg based webmail service provider which opened at the Waverley in Mowbray, while in Claremont, PGC has concluded a lease with an English language school who has signed a lease at R45 per sqm. Another established English language school which provides adult education - mainly for foreigners, is looking to buy premises in Claremont/Rondebosch.. Such schools are experiencing an increasing demand, especially among Chinese visitors who want to learn the English language. In Great Westerford, Rondebosch, a finance company from Dubai has leased space through Pam Golding Commercial. Other trends evident in the Southern Suburbs and the Cape Town CBD include those seeking premises for non-profit organisations - such as those involved in AIDS counselling and testing, anti-poverty groups and family planning clinics.

Ends

Issued by Gaye de Villiers

Tel: 021 6837788 or 083 325 1939

On behalf of Pam Golding Commercial