MTN have signed a five year lease to occupy the entire 4 700m² of office space (on two levels, served by parking in the building for 150 vehicles on a ratio of four bays to 100m².

Paul Scop, Western Cape Leasing Manager for Redefine Properties, now one of SA’s two major property owning and development groups, revealed this week that the lease has a total capital value of R37 million – a figure which includes a market related annual escalation.

The new arrangement means that South Africa’s two leading cell phone companies now both have premises at Century City – and face each other across Century Boulevard.

“Right now the market is very much in the tenants’ favour with a variety of incentives being offered by landlords to secure new leases.  This situation could continue for some time,” said Scop.  “However, Redefine had responded to the tough conditions with innovative offerings designed to give something extra – including generous installation allowances and structured annual escalations.”

“In today’s office leasing market,” he said, “the prizes go to those who are quick off the mark in responding to enquiries, open to suggestions from potential tenants and able to appreciate and foster their ties with South Africa’s leading brokerage houses.”

MTN’s move to Heron Place, he said, is logical for a company requiring space for over 140 people because experience has shown that Century City is exceptionally well sited to attract staff. 

“Once the new Koeberg Interchange, is complete and the new rail connection, Century City’s accessibility will be even further improved.  The precinct as a whole is also very attractive because of the proximity to Canal Walk.”

Heron Place, said Scop, is equally well suited to open plan or cellular layouts.  MTN, he expects, will opt mainly for the latter and will use much of the ground floor for a restaurant and training area.

The conclusion of this deal means that Redefine has only 1 000m² of un-let office space in Century City. 

“This,” said Scop, “is fairly insignificant in relation to the 700 000m² total office and industrial space that Redefine owns in the Western Cape where our vacancies have been kept below 7% despite a recession that as yet shows few signs of ending.”

Looking ahead, he said that in the current market tenants should be taking advantage of the conditions to peg their leases at favourable rentals for three to five years – because current rates are unlikely to be repeated.