Propert loan stock company ApexHi has taken advantage of favourable conditions in the Eastern Cape, investing R152,5-million in buildings in the region.

The group has increased its portfolio from three buildings in 2001 to 14 buildings, bringing its gross lettable area to 94,129m².

ApexHi executive director Deon Feinblum says the Eastern Cape portfolio, which comprises five per cent of its total portfolio, has experienced reduced vacancies, but higher rentals.

"Our strategy of investing in properties in smaller towns and cities around the country is paying off, as there continues to be a demand from regional government and retailers for quality space in these areas," he says.

The company's Eastern Cape portfolio is made up of 73,949m² in Port Elizabeth, 8,575m² in Uitenhage, 5,104m² in East London and 6,497m² in King William's Town. The sectoral split is 16,8% industrial, 37,9% retail and 45,3% commercial.

Some major office deals have been concluded with government tenants for space in the Port Elizabeth CBD.

Feinblum says retail rentals in the city's CBD have doubled over the past two years.

"There is no vacant space in the CBD and vacancies in the city's top retail centres have dropped to less than one per cent," he says.

The company also has low vacancy rates in Uitenhage (1,9 per cent) and King William's Town (0,3 per cent).

"The trend towards decentralisation is less pronounced in smaller towns and cities and the oversupply of space is not an issue," Feinblum said. "The result is far less pressure on rentals and a higher likelihood of renewals."

Eastern Province Herald