PROPERTY: Growthpoint Doubles Dealmaking
Recent Western Cape Business News
WITH the number of deals concluded (in the year ending June 30, 2008) doubling in square metres year-on-year and the associated deal value tripling, it is no wonder David Stoll, who heads up Growthpoint’s Cape Town office, describes the market as almost unbelievable and the leasing results highly successful.
Growthpoint’s Cape Town office concluded deals on a total of 220 000 sq m valued just short of R700 million.
Stoll says offices are without a doubt the star performer in the Western Cape, accounting for R415 million in deal value over 65 000 sq m of space.
“New developments and acquisitions such as MontClare Place, The District and The Estuaries contributed to the superb office leasing, as well as properties from the former Paramount portfolio, which provided us with the opportunity to fill vacancies and increase rentals,” says Stoll.
While the sustainability of this performance is unlikely, with fully-let premises and a shortage of vacant space inhibiting further leasing growth, there are a number of new opportunities for Growthpoint’s leasing team in Cape Town. This includes the redevelopment of 11 Adderley in the CBD, formerly Shoprite offices, which will bring a further 22 000 sq m of reasonably priced space to market.
“We maintain strong broker relationships. Nearly 30 000sq m of deals were facilitated by external brokers. Some 190 000sq m of deals were concluded by our own team of brokers, who optimised the positive market conditions,” says Stoll.
The performance of retail and industrial property in Cape Town was also impressive, if somewhat less astonishing than offices. Some R142 million of retail leasing deals were concluded over 19 000 sq m of space and R136 million worth of industrial leases were finalised over 135 000sq m of premises.
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