Real Estate Investor Magazine South Africa June 2014 | Page 43

REI Commercial
Soon after the start of this year, a new powerful interest
in commercial property investment in the Greater
Cape Town area became evident. The high demand and
shortage of stock situation is exacerbated by the serious
lack of stock in the high demand areas such as Marconi
Beam, Montague Gardens or Killarney Gardens and
Paarden Eiland for industrial space and Century City,
Milnerton, the CBD and Claremont for office space.
‘Good’ industrial space is now leasing at R45 to R65 per
m2 and the less expensive areas at R38 to R44 per m2,
while in high demand office space is renting at R110 to
R160 per m2 and in the low demand areas at R70 to R110
per m2. In all areas, she said, rents are now rising by 6%
to 8% per annum.

Valuable Input

Laurence Rapp
CEO
Vukile Property Fund

Dylan Ross-Kent
CEO
Hygizone

Sandile Nomvete
CEO
Delta Property Fund

Investing in listed property,
like SA REITs, is less costly
than ow ning a physica l
property, plus it offers all the
benefits, and more, of direct
prop er t y ow ner sh ip. T he
quality of these SA REITs
inf luence our economy and
the quality of people’s lives.
SA REITs are also making it
easier for all South Africans
to gain access to the benefits of
property ownership.

The 2013 Global Tenant Survey
by t he Bu i ld i n g O w ner s
& M a na g er s A s soc iat ion
I nter n at ion a l ( BOM A) –
identified health and hygiene
amenities as a latent opportunity
for property developers and
owners. The BOMA survey
indicated that hea lth and
hygiene features correlated
strongly with tenant satisfaction
of f e r i n g a n o p p o r t u n it y
to increase propert y value
especially as hygiene amenities
are often rare in buildings in
South Africa.

It was announced recently
that DPF reached its f inal
distribution to a guidancebeating 72.69 cents per linked
unit for its first full financial
year as a JSE-listed property
fund. This is attributed by
the out-performance of its
substantial growth in assets, its
increased management capacity
for its growing portfolio and
excellent debt management,
among other factors.

www.reimag.co.za

June 2014 SA Real Estate Investor

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