Investec Property Group reported an outstanding leasing performance during 2005 concluding leasing deals valued at approximately R1,6 billion representing some 910,000m2 nationwide.
 
Investec Property Group is asset manager for Growtpoint Properties Limited, the largest JSE listed South African Property Fund and Metboard Properties Limited, South Africa’s only focused industrial property fund, and is responsible for the leasing of both companies’ property portfolios.
 
“South Africa’s retail sector has boomed on the back of increased consumer spending and retail leases concluded increased from 2004 and made a substantial contribution of R580 million to the overall figure,” notes Steve Grupel, Head of Investec Property Group’s Gauteng Leasing Division.
 
Following retail property, industrial leases accounted for R533 million and an upswing in the demand for office space resulted in deals valued at R485 million being concluded over commercial properties.
 
Investec Property Group’s external brokers, active across all sectors, accounted for 20%, of the total deals concluded in 2005.
 
“Strong relationships with brokers, retailers and South Africa’s leading companys remains Investec Property Group’s competitive advantage,” expresses Grupel.
 
Analysts concur that property was the top performing investment class of 2005 and is expected to remain the investment asset class choice for 2006.
 
Grupel explains that the Investec Property Group continues to respond to market needs and, as a result of stock shortages across all sectors, is proactively seeking suitable development and redevelopment opportunities to unlock value within its portfolio.
 
 
Gauteng:
 
Industrial property leasing increased notably in Gauteng in 2005, contributing to the group’s positive leasing results. “Almost all vacant space was let, leaving very little available stock. Rental levels increased markedly for unit sizes across the board. Investec Property Group is now left with minimal industrial space to let in the portfolios of its listed property funds under management,” points out Grupel.
 
In Gauteng, retail leases valued at R363 million were concluded by Investec Property Group. This is up from the previous year’s R253 million, a substantial increase due to heightened demand driving up rental levels.
 
“Investec Property Group is currently seeking additional retail developments in both Johannesburg and Pretoria. It has already undertaken the development of the 43,000m2 Trade Route Shopping Mall in Lenasia which will be opening in March, in addition to other developments elsewhere in the country which are in the embryonic stage,” says Grupel.
 
The commercial market has experienced strong growth in Gauteng and office vacancy levels reduced. Due to high demand Investec Property Group has embarked on the upgrade of B- and C-grade buildings to A-grade specifications.
 
 
Western Cape:
 
The Western Cape leasing division of Investec Property Group reported another successful year with vacancies in its portfolio under management at an all time low.
 
“While the total area of leases concluded during 2005 was stagnant at around 160,000m2, the value of leases decreased from R235 million (2004) to R181 million (2005). This is indicative that the significant upswing in the commercial market is over, in that there are no longer any substantial vacancies to be let in the Western Cape,” notes David Stoll of Investec Property Group, Cape Town.
 
 “Looking to the future, provided the basic economic indicators remain stable, there is every reason to assume that the portfolio under management will sustain its current occupancy levels and accordingly, the letting performance should similarly remain impressive,” says Stoll.
 
 
KwaZulu Natal:
 
Kwazulu Natal continued to experience a strong demand for quality industrial premises. Retailers continue to boom in this province and as a result there is a robust demand for well-positioned retail space as retailers continue to expand and open new premises.
 
“Lower stock levels in the industrial sector, as well as fewer leases becoming available for renewal in 2005, resulted in the decrease from R105,5 million in 2004 to the recorded figure of R47 million for 2005,”explains Greg de Klerk of Investec Property Group, Kwazulu Natal.
 
 
~ Ends ~
 
 
Distributed on behalf of:
Investec Property Group
Steve Grupel
Tel: 011 286 7000
 
By:
 
Marketing Concepts
Sandy Davey/Bronwen Noble
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C         083 453 6668   (Sandy)
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Publisher: Investec Property Group
Source: Investec Property Group