Sure Kamhunga

Companies Editor

PRIVATELY owned property developer Multi-Spectrum Properties (MSP) is broadening its property portfolio by venturing into commercial developments as demand slows down in the residential sector.

Commercial development manager Philip van der Berg said MSP has approved more than R270m to finance several office and retail property projects as it diversified risk in its property portfolio.

Demand for residential accommodation has fallen drastically as more houses and flats remained unsold due to high mortgage rates.

Van der Berg said the slowdown in the residential sector was an opportunity for developers and investors to diversify their risk and consider investments in the commercial sector.

Among commercial developments planned for this year is a R60m upmarket six-storey office block at Tyger Valley Waterfront, in Western Cape. The block, which is fully tenanted, will be completed by October. A R20m office complex with 44 units is being built in Florida and will be complete next June.

Van der Berg, who has just assumed his new position, said the most exciting project was a R165m shopping centre in Guguletu, which would have more than 18000m² of retail space anchored by major retail clients. The centre opens in 2010 and demand for space was high, he said.

“This development, to be constructed at a cost of R30m, is due for completion in March 2009," Van der Berg said. Other projects include a retail centre to be jointly developed with Asrin Properties and a large-scale commercial and industrial development in Somerset West.

Source: Business Day