ApexHi Properties Limited has renewed the lease with its largest commercial tenant, Anglogold, boosting the total value of leasing deals to R575-million for the 11 months to end May 2005.

Leases for some 350,000m2 have expired since 1 July 2004, and tenants have been secured for more than 383,000m2 in the same period.

ApexHi and property management company, Broll Property Group, have renewed 70,3% of the leases that expired, equating to 269,000m2. In addition, leases for a further 115,000m2 have been secured from new tenants.

Anglogold has renewed its lease for more than 20,000m2 in the flagship 11 Diagonal Street. ApexHi executive director, Deon Feinblum, says the renewal is a boost for the company’s Johannesburg CBD portfolio, which currently accounts for 12,66% of the total property portfolio. Vacancies in the CBD portfolio have reduced from 22% to 20%.

“The Anglogold lease is for five years, with a six months’ cancellation clause after 18 months, and was renewed at firmed rentals in excess of the expiry rate,” he says.

As a result of the letting performance to date, the vacant area of the portfolio has been reduced by 225,663m2, which decreases the vacancy of the portfolio from 14% at the end of June 2004 to 11,4% at the end of April 2005. This is however expected to go up as there are some large leases expiring in May and June.

“ApexHi is on track to deliver its best results to unit holders. Our objective at the beginning of the year was to renew at lease 205,000m2 of the 350,000m2. We have already exceeded that target,” says Feinblum
 
Ends