Nick Wilson

 
A NEW R28m sectional title office development is being planned for one of the last development sites in the Illovo Boulevard precinct at 8 Melville Road.

The 2000m² office complex, in Johannesburg’s northern suburbs, will be developed by McCreedy Friedlander. MD Mark McCreedy says the company will be looking to subdivide the development into six units of about 350m² each.

“We anticipate starting the development in August or September, with occupation in about May or June next year.”

He says there has been a lot of interest in the new development. “I have had a lot of inquiries and now we’re in a position to start signing people up. Here we are looking at financial services companies and a top property development broking company.”

He is not concerned about an oversupply problem developing in the office property market because of developers bringing new developments to the market.

“As long as developers are sensible and sign tenants up and have a prelet situation where about 50% of development is signed before they start, there shouldn’t be any problems. I only have six units, so I don’t visualise them being around too long.”

The Illovo Boulevard precinct is located along the spine of Fricker Road and the east side of Melville Road, bounded by Bompas Road to the south and Harries Road to the north.

McCreedy Friedlander says tenants already in the Boulevard include Ethos Private Equity, Mettle, JPMorgan, Santam Insurance, African Merchant Bank Capital, Kagiso, Brait SA, Webber Wentzel Bowens, Assor Mining, Aon Insurance, Royal Bafokeng Holdings and International Financial Corporation.

It says rentals in the Boulevard are expected to be between R120/m² and R130/m² next year.