“It’s been a hectic 6 months! Our Commercial and Industrial broking team have concluded 65 individual deals worth over R237 million,” says Wayne Wright, Gauteng and International Director of JHI Real Estate.
 
Investment sales, vacant land sales, owner-occupier (industrial and office) sales to development leases, are amongst those concluded.

Grove City in Houghton and CGS House and Corporate Park in Bedfordview were sold to private investors at yields ranging from 8.5% to 13%.

Various owner-occupier factory sales in the industrial nodes of Isando, Linbro Park and Aeroport have been finalised, including Haas CNC (2 000m²) at R7 million, and Imajez (2 000m²) for R7.1 million. Hyundai (3 500m²), Thornton Panelbeaters (1 500m²) and Camargue (1 000m²) have signed 5 year leases over their new premises at rentals ranging from R30 to R45 pm² gross. 

“Due to the acute shortage of zoned and serviced land, a number of end-users are land banking unzoned land for future use”, says Wright. “We have recently sold a 3,4ha strategically located land parcel, with Highway frontage in Pretoria for R43 million”.

Sandton office rentals for 300 – 400m² premises range from R65 pm² to R70 pm² net over 3 year leases, and a number of these deals have been signed, including, ICICI Bank, Global Credit Corporation and Century 21 Estates. Office space is now at a premium in these areas, with pockets of space coming on stream. “In fact, certain developers have advised that they are proceeding with new projects on spec due to the foreseeable shortage of prime A-grade premises”.

Jason Cooper, JHI’s Regional Broking Manager comments that the market is extremely busy, nothwithstanding the stock shortages and recent interest rate hike. He recently finalised the new 7 500 m² Head Quarters for a Construction Consortium in Linbro Park and the sale of Corporate Park in Bedfordview. “I think yields will normalise now and sellers may consider taking profits sooner rather than later. There have been substantial gains for investors over the past 18 months” says Cooper.

A move back to the Johannesburg CBD and Braamfontein by certain businesses has created a sudden increase in office demand, evidenced by the deals concluded by JHI’s CBD broker. Businesses involved in administration, parastatal groups, medical services and educational sectors of the market are taking up office space. “In the last 10 or so transactions, rentals ranged from R28 to R40 pm² gross for space in the 200m² to 500 m² range”, adds Cooper.
ENDS

Issued by Rosemary Roberts of JHI Real Estate Ltd – 21 July 2006
For further information please contact Wayne Wright on (011) 441-0264 or 083 700 2675

or

Jason Cooper on (011) 441-0372  or 083 266 5367