The slogan used in SAPOA’s 37th Annual Convention this year was “The Property Age ……….. sustaining the high” seems to be holding true so far, according to JHI’s Gauteng broking team.

“We have had a great start to the year and a number of sales have been closed.  In fact a few properties that were sold in the first months of this year are now back on the market for re-sale at higher prices,” says Wayne Wright Leasing & Sales director of JHI Real Estate Ltd.  “Downward pressure on yields, low interest rates and shortages of stock have created turn-around property deals”.

Flora Centre in Roodepoort was sold for R70 million to a private investor looking to upgrade and expand the centre, as well as a Kimberley property for R16 million at yields of between 12-13%.  These investors are acquiring properties to bolster existing portfolios with a view to creating a listed vehicle in the near future.

In addition to income producing properties, a number of land sales have also been concluded, one of which is a 4ha site in the Wierda Park, Midrand area for R11,7 million.  The site was bought by a private developer who plans to build a 15 000m² “life-style” centre. JHI have secured the leasing mandate on this exciting development.

“Owner occupiers in both the office and industrial sectors are desperately seeking properties and our brokers are hard pressed to keep up with this demand due to stock shortages,” adds Jason Cooper, regional manager of the division.

“Factory premises in the 2000m² to 4000m² range are in short supply and purchase prices for older properties currently at R1 500.00 pm² to R1 800.00 pm² are closing in on new prices”, he said.

“Industrial land for sale has virtually dried up and prices for parcels that are available, are over R300/m².  This makes developments more costly and drives rentals above the R30/m² mark.

According to Cooper, prime sites in Crown are nudging R380 pm² and Capital Hill Estate in Midrand is  sold out.

Industrial rentals are also on the upward move as illustrated in a recent deal with Alert Engine Parts having leased 3 045 m² in Kulani Business Park for R25,00 pm². 

ENDS
29 June 2005

CONTACT : JASON COOPER FOR MORE DETAILS ON 011 441-0372