|Interest in commercial property in Cape Town's northern suburbs is growing exponentially as investors turn to this sector in preference to residential units. |
Chris Cloete, co-owner of the Northern Suburbs franchise of Chas Everitt International, says in a company media release, that investors are now putting their funds in this sector because commercial property lags behind the residential sector in the business cycle - and is now where residential property was before the recent boom.
"We thus confidently expect good returns in commercial property for the next few years, and the level of interest is indicated by the fact that although we are still achieving an excellent turnover in residential sales, our newly beefed-up commercial sales team is starting to outperformed its residential counterpart."
Cloete says his office recently appointed a strong commercial sales team to advise commercial investors - and especially to facilitate opportunities for small investors.
"We have been lucky in assembling a team of experienced business people who are able to project business cash flows and can quickly establish underlying value.
"Their combined experience allows us to offer our service across the full spectrum. Vernon Basset and Erhardt Joubert work as a team and specialise in putting deals together between developers and investors, while Frik van Zyl, with his wide experience in factory management, assists investors in the light and heavy industrial field. Werner de Goede specialises in land sales and commercial property such as restaurants.
"And in the six months since we began targeting the commercial property market, we have won the confidence of several big developers through quick sales of their offerings and are currently working with some of them on bringing the concept of cluster, or hive, developments to the northern suburbs."
The hive concept revolves around establishing a core industry with space for related and fringe activities within the same complex. Not only does it boost the viability of the particular industry, it also creates excellent investment opportunities, Cloete says.