However, Norbert Sasse, the CEO of Growthpoint Properties, says he believes new development is being constrained by difficulties in rezoning land.

"The need for environmental impact studies is also serving to delay approvals for new development. In addition, new developments are very costly. A new project costs two to three times what we were paying for existing buildings two to three years ago," Sasse says.

He says there are areas where upgrading an existing development from B grade to A grade space means that investors can get a better return on their investment.

"We see considerable value in redeveloping existing properties. In Growthpoint, for example," he says.

Business Times
 
Publisher: I-Net Bridge
Source: I-Net Bridge