PROPERTY: Cape Town's Real Estate Shifts
Recent Western Cape Business News
CAPE TOWN looks set to get another locally focused property company following a restructuring exercise at JSE listed property services company Colliers SA.
Earlier this year Colliers opted to dispose of all its non-core assets to certain members of the company’s executive team.
This will leave Colliers a purely commercial property focused company with property investments in Cape Town. These include industrial and retail properties in Elsies River and Hout Bay.
The Colliers board reckons the re-alignment of the group’s business strategy into a focused property owning entity will facilitate future acquisitions by the company of income producing properties.
It might be worrying that a handful of executives have opted to head off with the non-core assets rather than stick around the listed company. So it will be interesting to see, in the months ahead, how successful Colliers will be in building on its rather small existing Western Cape base.
One company that is adding considerable bulk to its Cape real estate portfolio is recently listed Vunani Property Investment, which last month finalised the acquisition of the Forestrust building on the Cape Town Foreshore from Redefine Properties.
Vunani will pay R249.5 million for the Foretrust building, which was recently independently valued at R251 million.
Vunani says the transaction is in keeping with the company’s strategy of acquiring well located quality assets with stable income streams that ensure yield enhancement.
Vunani says the Foretrust Building is in a developing node and is tenanted by PWD with six years remaining on the lease.
The Foretrust building was acquired at a rather attractive yield of 11.1%.
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