Spearhead adds stunning new Claremont building to their portfolio

Pursuing their aims of strengthening their Southern Suburbs portfolio, diversifying throughout the Greater Cape Town area and achieving an equitable “mix” of commercial, industrial and retail space, the JSE listed property loan stock company, Spearhead Property Holdings has taken delivery of a new three storey Claremont Main Road property, Stanhope Bridge. 

The value of the building has been listed in Spearhead’s books at R52 million – and it is already virtually fully- let. 

Stanhope Bridge was developed on a turnkey basis for Spearhead by Rand Merchant Bank (RMB) Properties and has been designed to have a light grey metallic-chrome-glass façade which complies with the international BMW franchise dealership’s image.  This is because the anchor tenant is Eric Scoble’s new Auric BMW premises – which has just under 4 000m2 of showrooms, workshops and offices. 
 
Scoble is reported to have said that he is delighted with the building, which was designed by architects Boogertman & Krige and that the high profile corner position on Main and Stanhope Roads is quite possibly the best possible site in Cape Town for a luxury car dealership.

Other tenants in the building include the Claremont branch of FNB with 1 235m2 (they had premises there before the upgrade), an outlet of the automotive accessories and a fitment group, Autoquip (who have taken 700m2) and a range of smaller retail shops such as a coffee shop and a travel agency.

The new development also includes 500m2 of new A-Grade offices on two floors.  These are accessed by their own foyer and lift and entrance to the building is strictly controlled.  This prime space is now available for letting.

The Auric BMW lease will run for twelve years.  FNB and Autoquip have signed on for five years.  Flax estimates the initial return at just over 10%.

Bringing Stanhope Bridge on stream right now, said Flax, makes good commercial sense because occupancies in Claremont have improved radically over the last two years and both sides of Main Road have witnessed an upsurge in demand.  Vacancies here, he says, are now below 2%.

This year Spearhead, still hot on the development and acquisition trail, have added some R350 million worth of buildings to their portfolio which now has a value of just on R1,5 billion.  Their aim, says Flax, is to double this figure to R3 billion by the end of the 2007/2008 financial year. 

Footnote: 
Quantity surveyors on the Stanhope Bridge contract were Letchmia Daya Varachhia and the builders were Stocks and Stocks.  Abu Varachhia, Senior Partner of LDA, is also a director of Spearhead. 

For further information contact Mike Flax on 021 425 1000.