The JSE All Property Index closed at 8 794 last night following the MPC's decision to keep the repo rate unchanged at 8.25%.
Selling to relocate in search of better municipal services has remained the key driver for commercial property owners/occupiers for the sixth consecutive quarter according to FNB Commercial Property Finance’s data for Q2 2024, equating to 32.5% of total selling. Financial pressure, the second biggest single driver at 22.6%, was slightly lower during Q2 2024 than the prior quarter’s 26.69%. The greatest level of financial pressure-related selling or relocation appears to be in Gauteng’s metro regions with Greater Joburg recording 51% and Tshwane 31.5%. The two major coastal regions, Cape Town (11.8%) and eThekwini (10.30%) recorded the lowest. A third key reason that emerged was selling to move closer to their markets at 23.5%.
Super regionals Sandton City and Victoria Wharf Shopping Centre continue to rank high for consumer satisfaction according to the new quarterly publication, the Urban Studies Shopper Index for Q2 2024 which ranks SA’s super regional retail assets based on Google Review ratings. While Mall of Africa produced a strong upward trend during the quarter, KZN’s Pavilion Shopping Centre climbed the index from number 12 during Q1 2024 to number 6 during Q2 2024 with its shoppers’ online reviews frequently highlighting an appreciation for the asset’s overall improved shopping experience.
The African Development Bank Group has approved a R18.85bn corporate loan to Transnet for its recovery and growth plans. The 25-year loan, fully guaranteed by government, will facilitate the first phase of the company’s R152.8bn five-year capital investment plan to improve its existing capacity. Transnet’s recovery plan, launched in October 2023, seeks to rehabilitate its infrastructure and accelerate the relaunch of operations over eighteen months with a focus on restoring operational performance and freight volumes to meet customer demands.
The Competition Commission has approved Spear REIT’s proposed acquisition of a portfolio of assets in the Western Cape from Emira Property Fund, as announced to shareholders in early April 2024. For a total consideration of R1.146bn, the portfolio comprises five light industrial assets, three office assets, three mixed-use assets (office and retail) and two medical retail centres with a total GLA of +93 000m2. The acquisition will increase Spear’s assets under ownership from 29 to 40, c. R5.4bn, with the GLA of its portfolio increasing to c.502 000m2 in the Western Cape.
The Valuator Advisory has acquired Rode & Associates Property Consultants & Valuers with Bilaal Chand to head the company as CEO. Renamed as Rode & Associates, the merger will produce a BEE Level 2 asset valuation company with a comprehensive service offering that will include business valuations, moveable asset valuations, and immoveable asset valuations for listed and unlisted property companies and funds. Having created a 37-plus-year legacy, founder, Erwin Rode, will continue to provide consultancy services.
The deadline for NewRiver REIT’s announcement whether it intends to, or doesn’t intend to, make an offer for Capital & Regional has been extended to the 15th of August 2024, with consent from the Takeover Panel. In late May 2024, Growthpoint, Capital & Regional’s majority shareholder, received a preliminary expression of interest from NewRiver Reit.
The Association of South African Quantity Surveyors (ASAQS) has elected its first black female president, Mosha Senyolo. In 2021, she was appointed junior vice president at ASAQS which provided her with valuable insights and preparation for the presidency.
