Refurbishment follows successful five year lease with Department of Public Administration

ApexHi has successfully secured a five year lease, for 14,000m2, with the Department of Public Administration in its Zanza building, to be renamed Batho Pele, in Pretoria.

Renovations worth approximately R35-million are currently being undertaken and encompass a full refurbishment including the façade, lobbies, floors, lifts and toilets.

ApexHi executive director, Deon Feinblum, says the Zanza building was purchased two years ago as part of a portfolio of 12 buildings acquired from property group, Pangbourne. “At the time of purchase the Department of Trade and Industry (DTI) had a short term lease, and ApexHi acquired the property at a price based on net income of the DTI’s short lease. Subsequent to the acquisition, we negotiated an 18 month renewal of the lease with DTI

“Our agreement with the Department of Public Affairs is a win-win for all. The tenant occupies the entire state-of-the-art refurbished building, and we have a fully-let building with a government tenant for five years, on a 12,5% yield,” he says.

Feinblum says Broll and the ApexHi management team are working hard to sweat the assets. “As the acquisition drive slows down, we are increasingly focusing on improving the quality of our existing buildings and tenant profiles to reduce vacancies and increase rentals,” he says.

The Department of Public Administration will occupy the building in December 2005 once the refurbishment is complete.

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