PROPERTY: Jhi Awarded Management Contracts for Property Funds
Recent Gauteng Business News
JHI property services company has been awarded the management contracts for the property portfolios of Dipula Property Fund - which comprises 91 buildings with a capital value of R773 million, and Mergence Africa Property Fund - comprising 51 buildings with a capital value of R597 million. Both property portfolios are a mix of commercial, retail and industrial properties located in most major cities around South Africa.
The Dipula Property Fund was established in 2006 and is co-owned by Redefine Property Fund and the black-owned and managed Dijalo Property Services – the latter being headed up by Saul Gumede. Mergence Africa Property Fund is similarly co-owned by Redefine and the black-owned and managed Mergence Africa Properties. Mergence Africa Holdings operates in the real estate and financial sector and was formed in 2004 by Izak Petersen and Masimo-a-Badimo Magerman.
Comments Johann Boshoff, property management director for JHI: “Along with two other companies JHI was invited to tender for these two contracts, and based on our track record as a reputable property management company, our national footprint and property management model – which covers a broad spectrum of services over and above the norm, we were awarded the management contracts for the property portfolios of Dipula and Mergence.”
JHI currently manages approximately R42 billion in property assets, which reflects an increase of 22 percent in the value of properties managed in 2008/9.
Commenting on the commercial property market Boshoff says since the Soccer World Cup, while commercial interest remains relatively slow, JHI has experienced a notable increase in enquiries for industrial space across the board.
“Compared to the general market where commercial vacancies in some instances reach approximately 10 percent, the vacancies in the portfolios managed by JHI vary from 2.5 percent to six percent. Vacancies in terms of retail space remain low at about two percent, and we anticipate that increased retail sales should support the greater demand that is experienced in the industrial market due to an increased demand for manufactured goods.
“However the overall sentiment in the market remains cautious due to the general low demand by households, high unemployment figures, escalating prices in electricity and other utilities and steep increases in municipal rates and taxes,” he says.
Business News Sector Tags: Property| Business| BBBEE| Franchising|