ApexHi asset manager, Grant Elliott says the acquisition effectively means ApexHi has control of six blocks of the inner city from highway to highway, which will allow for better security, improved traffic flow, parking and additional space for tenants within the precinct.

Two of the properties were acquired at a 12% initial yield, and will increase the gross lettable area (GLA) by 7,500m2 to 37,500m2 providing an opportunity to let the space to the waiting list of potential tenants who would benefit from being located within the precinct.

In addition, one of the buildings, which was only partially constructed, will be demolished and redeveloped to provide on-grade parking to further alleviate the parking issues and congestion within the precinct.

“Apart from housing South Africa’s only diamond exchange centre and the statutory bodies, Jewel City already accommodates both Gauteng’s diamond grading companies, 66% of the province’s diamond cutters, 54% of the polished diamond dealers, 48% of the rough diamond dealers, and both specialised diamond courier companies.

“The precinct offers a niche service to the industry, which cannot be replicated elsewhere without a huge hike in rentals, and ApexHi is committed to continue improving the precinct to meet world class standards,” says Elliott.

To this end, ApexHi has contributed R2-million towards the installation of 15 additional CCTV cameras to monitor the routes between Jewel City and the highways, thereby expanding the City’s existing CCTV coverage area. The project, which is being implemented by the Johannesburg Development Agency (JDA) for the City of Johannesburg, aims to further ensure the safety of Jewel City tenants and visitors and to improve security in surrounding area.