JHI Properties grows its portfolio of management contracts in the Western Cape

Having earlier this year (June 2012) acquired the management contract for Cape Joint Pension Fund’s portfolio of properties - which are predominantly located throughout the Western Cape – JHI Properties Western Cape region has been awarded further notable property management contracts.

These include management of the 26 780sqm Foretrust building in Cape Town’s central city, which forms part of the Vunani Property Fund. In addition, in September (2012) JHI was awarded the management contract for the Absa Goodwood building, which is owned by Arrowhead Property Fund, as well as a portion of the Matlotlo Property Fund, which is privately owned.

Comments Liezel Conradie, regional executive in the Western Cape for JHI Properties: “Our latest building management contract is for Grand Central, comprising 33 616sqm in the heart of Cape Town.  With effect from December 2012, Ascension Properties Limited acquired this property from Capital Property Fund, and we are pleased to retain management of the centre, which has been part of our portfolio under management for the past few years. These recent additions to JHI’s portfolio of assets managed in the Western Cape represent a total asset value of approximately R874 million (comprising some 70 000sqm in total) and we are currently exploring further opportunities in the region.”

Commenting on the market in general Conradie says office vacancies in the Cape Town area and surrounds have been relatively stable and even saw a slight decrease in the third quarter (2012). “Currently office vacancies in JHI managed properties in Cape Town and environs are an average of 9.7 percent, which compares favourably with the SAPOA’s (South African Property Owners Association)  average of around 9.6 percent for these areas.

“Interestingly, B-grade offices are returning a greater improvement in relation to other classes, which is in line with national trends in the office sector. Lower rental rates still seem to be a common theme in the market as vacancies are prompting landlords to accept reduced prices in order to fill these. This is most likely the influential factor behind the B-grade vacancy reduction, as businesses are pressed to accept lower grade offices to meet budget or cost requirements.

“However, vacancies are very low in prime locations such as Century City and the V&A Waterfront, despite high rentals, which is testament to the strength of a good location with excellent surrounding infrastructure.”

Conradie says right now there is a great deal of choice for prospective new businesses and tenants. “This is coupled with the fact that the current economic climate requires that in order for landlords to remain competitive in the market they need to include provisions such as rent-free periods and generous tenant installations. From a tenant perspective, they can take this time of reduced rentals as an opportunity to secure higher grade offices at a lower rate, taking into account other factors such as relocation costs in their budget.”

She adds that currently the majority of enquiries for office space are from IT firms, international call centres and renewable energy companies. “The interest in terms of call centres is fuelled by South Africa’s relatively low cost for such structures and generally greater quality of and access to infrastructure in comparison with other African countries.  The demand from IT firms is being driven mainly by the increasing requirements for Cape Town’s International Convention Centre and technological solutions in business. Renewable energy companies are beginning to achieve growth in the market due to increased electricity tariffs and an increasing drive for sustainability and social responsibility in South Africa.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us