THE landmark south coast shopping centre Toti Towers has been sold to a private investor for R26m, one of the priciest property sales recorded in the area in recent years.

JHI Real Estate director Billy Latham, who negotiated the sale of the Amamzimtoti property, said the price was indicative of a market with very little quality stock available.

He said the sound tenant mix of the 6807m² building had been a strong drawcard. The 21strong tenant base is anchored on the ground level by Virgin Active and the Old Mutual south coast regional headquarters, for which the centre was originally built in 1997.

Other high-profile tenants include Woolworths on a 12year lease, Nando's, Blockbuster Video, a 7-Eleven supermarket, Fruit & Veg City and a bottle store and a pharmacy, jointly accounting for more than 80% of the lettable area.

"Retail has been the preferred property type for many investors due to its good performance over the past five years. (However), with most of the quality centres already changing hands, industrial property investment is really coming into its own," Latham said.

Latham also recently concluded the sale of a significant property in Umgeni Road, Durban, for R5,6m, confirming his assertion that industrial rentals were performing well. He said the sector would remain buoyant for the foreseeable future.