DEVELOPING
embassies and four prominent universities are located
within the greater Pretoria precinct and the opportunity
to tap into the service provision to these markets abounds.
Centurion lakeside – a short bus ride from the Centurion
station – is to be revamped and improved with the lake,
itself, being rehabilitated to improve its attractiveness.
As administrative headquarters to our national
government, Pretoria’s central business district remains
a firm target for property investment, an aspect of our
development terrain that has been somewhat under-rated
in recent years: a new series development and inner-city
R10-billion development termed Re Kgabisa Tshwane
will revitalise this inner city and re-establish Pretoria as a
leading city comparable to both Cape Town and London.
Residential development in both Hatfield and
Centurion has risen exponentially as a result of the train
and bus transport connectivity which the Gautrain
concept has provided while east of Beckett Street,
Hatfield’s residential area is changing into an exclusive
business district as property owners avail of the consent
use zoning rights within this node. The value-extraction
opportunity herein lies in converting or redeveloping
residential units into commercial office accommodation
to correlate with business growth.
Rhodesfield – another Gautrain station site – will also be
revised within the local authority’s Spatial Development
Framework (a document which property developers
should obtain from all local authorities in order to see
where development opportunities can best be exploited)
at a level exceeding R800 billion. Both residential and
commercial development is planned for this area and
private participation is an excellent opportunity for value
creation via property development.
RESOURCES
Courtwell Consulting
Sanett Uys
Executive, JHI
Q&A
1. Where do you see commercial property
investment going in 2014?
There will always be a demand for investment
properties. The main question remains if the
seller and buyer can agree on the value of
the building. The majority of the property we
are dealing with have been priced correctly
and are based on current market levels, which
helps to conclude a deal in a reasonable time
and manner. There are also various investors
properties types
50 that specialises in certain2013
Commercial Handbook
with a different risk appetite to traditional investors, and
bring a interesting dynamic to the market. Some of the
major property funds are also selling properties that are not
part of their core focus, bringing interesting opportunities
to the market for developers to redevelop and enhance the
buildings. As a result, the value of the building is increased and
the full potential of the building achieved.
2. What is your personal investment mantra with regards
to commercial property?
Do your homework, do a proper due diligence and market
analysis in the area where your property is located.
3. What key factors are needed for success in commercial
property investing?
Patience, property is a long-term investment. Make sure you
have a good property manager that understands property
cycles, budgets and leases. Without the proper management
of the income stream, the value of the building will be
jeopardised.
4. What makes one investment stand apart from another?
That depends, the value that can be unlocked in a building is
of interest to investors that want to redevelop or refurbish and
location and security of tenure of the lease is more important
for investors looking at the income stream. Some buildings just
have something special that appeals to investors.
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