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May 06, 2015

R400m KPMG Place office property development breaks ground in Roggebaai

in Office Property
R400 million office project breaks ground on the front row of the Roggebaai Office Precinct to be known as KPMG Place.
John Orford Old Mutual Investment
May 05, 2015

SA construction sector revival awaits R800bn infrastructure spend

in Construction
Stakeholders in South Africa’s construction sector continue to anxiously await the materialisation of the proposed R800-billion of public sector investment in the country’s infrastructure over the next three years.
Norbert Sasse
May 05, 2015

Growthpoint’s initial investment in GOZ trebles in Rand value

in Listed Property
Growthpoint Properties Australia’s (GOZ) share price has increased three-fold in ZAR terms in the six years since Growthpoint Properties acquired a controlling stake in the ASX-listed company in 2009.
SpringsMall
May 04, 2015

R950m Springs Mall at Blue Crane Eco Park scheduled to open before Easter 2017

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Jeffrey Wapnick
May 04, 2015

Octodec delivers solid performance and improves total distribution per share by 9,3%

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Redefine International announce appointment of CFO

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Oasis Crescent Property Fund anticipates distribution growth of 12% and 22%

Oasis Crescent Property Fund anticipates distribution growth of between 12% and 22%
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Tower Property Fund concludes R110m acquisition of Evagold Centre

Tower Property Fund Limited concludes R110m acquisition of Evagold Centre.

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Wednesday, 20 March 2013 12:37

Office space under pressure in year ahead

Published By  eProp@News
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Property pundits agree that office property will remain the problematic sector in the next 12 to 18 months with dominant retail centres likely to be the best performers.

Vukile Property Fund CEO Laurence Rapp believes that — consistent with last year — the market will continue to "see the office property sector under pressure".

While Rapp believes the performance of the industrial property sector will continue to improve, retail property will continue to be "the preferred asset class given its growth potential but inherently defensive nature".

Redefine Properties CEO Marc Wainer believes the pressure in the office property sector will be particularly felt in the older B-grade property arena. Wainer says it becomes much more difficult to let B-grade space in the current market because newer A-grade rentals are flat. This results in A-grade rentals being more affordable and consequently there is less incentive for prospective tenants to move into B-grade space.

As for new office property space being developed, Wainer says: "Anything being built now is being built specifically for tenants." He says there is little in the way of premium office properties coming onto the market on a speculative basis.

Redefine is, however, developing a 20,000m² office building in Sandton.

Wainer says retail property is "still pretty strong, particularly in the larger centres", adding: "We’ve seen major retailers are still doing well, expanding their retail footprint."

He says industrial property is strong and there are good signs in distribution warehousing.

Growthpoint CEO Norbert Sasse says he sees the office property market remaining the weakest of the property types in the next 12 to 18 months, especially given the muted economic growth outlook in Finance Minister Pravin Gordhan’s 2013 budget. Gross domestic product growth at about the 2.7% level is predicted for 2013.

Sasse also warns the market is seeing a slowdown in consumer spending, which will have a potentially negative effect on the retail property sector.

"However, we are confident the retail sector will continue to provide above average returns for the next 12 to 18 months."

As far as industrial property is concerned, he says there seems to be "mixed signals coming through the economy with manufacturing output coming lower than expected".

Sasse believes this, together with labour unrest in the mining sector, could also "pose some challenges for the industrial sector. However the fact that national vacancy levels in the industrial sector are at the 3% to 5% level suggests that there is no major oversupply of space. We are confident about the industrial property sector."

Source: BD

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AFRICAN & INTERNATIONAL PROPERTY NEWS

Norbert Sasse

Growthpoint’s initial investment in GOZ trebles in Rand value

May 05, 2015 Listed Property eProp Commercial Property News
Growthpoint Properties Australia’s (GOZ) share price has increased three-fold in ZAR terms in the six years since Growthpoint Properties acquired a controlling stake in the ASX-listed company in 2009.

ECONOMY & PROPERTY ECONOMICS

Default Image

R400m KPMG Place office property development breaks ground in Roggebaai

May 06, 2015 Office Property eProp Commercial Property News
R400 million office project breaks ground on the front row of the Roggebaai Office Precinct to be known as KPMG Place.

CONSTRUCTION & INFRASTRUCTURE

Ivor Ichikowitz

Billionaire loses legal battle against High Street Auctions over phantom bidders

April 16, 2015 Commercial Property Auctions eProp Commercial Property News
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GENERAL / OTHER

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April 15, 2015 Green Building & Environment eProp Commercial Property News
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EVENTS, FORUMS & SOCIAL

DavidSimon

Mall giant Simon Property drops hostile bid to buy Macerich

April 16, 2015 International News eProp Commercial Property News
US mall giant Simon Property drops a hostile campaign for rival Macerich after Macerich rejected the latest takeover offer.

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