PROPERTY: Octodec Set to Purchase Prime Industrial Property
Recent Gauteng Business News
“The acquisition will contribute to Octodec’s distributions growth,” says MD of Octodec Investments Limited Jeffrey Wapnick. “It is also in line with Octodec’s strategy of actively pursuing redevelopment and investment opportunities that will enhance the overall quality and value of our portfolio”.
The 35,990sqm industrial property caters for a variety of enterprises, hosting 124 light industrial factories, and represents a 10.4% annualised property yield for Octodec. The purchase price will be settled in cash and the property will be acquired through Octodec’s wholly-owned subsidiary Presmooi (Proprietary) Limited.
“The acquisition of The Tannery Industrial Park represents an attractive investment in a prime location situated in an established busy industrial area,” says Wapnick.
Octodec has continued to unlock the value of its Johannesburg and Pretoria CBD portfolios through redevelopment and refurbishment.
In the recent interim financial results report for Octodec, the company invested some R42 million in the upgrade of properties, during the six month to 28 February 2011, including Killarney Mall and industrial unit complex Reliance.
The cinema complex and adjacent restaurant area at Killarney Mall has been redeveloped. The specialised luxury 708-seat cinema multiplex delivers five screens each featuring the latest in 3D technology as well as state-of-the-art Dolby Digital surround sound. Killarney Mall CineCentre is the only totally 3D cinema multiplex in South Africa that has the ability to screen 3D movies at any of its cinemas.
Leases for five new restaurants have been concluded, creating a complete new entertainment attraction at Killarney Mall. The restaurants are; Capital Indian restaurant, Jozi Steakhouse, Italian restaurant Del Forno Cucina, firm South African favourite Ocean Basket and new concept Mumbai Café.
“With five new restaurants and five state-of-the-art cinema screens, we are delighted to truly be Johannesburg’s newest entertainment hot spot,” says Wapnick.
“Octodec’s total investment in the upgrade amounts to R33,8 million and ensures the longevity of this key asset,” explains Wapnick. An upgrade of the Killarney Mall office block was also completed at a cost of R4,8 million.
Vacancies have reduced significantly to around 3% for the entire Killarney Mall. Wapnick explains the upgrade will support the sustainability of increased distribution growth.
The redevelopment of Rand Central in the Johannesburg CBD commenced during the period. This R45 million investment will create 143 residential units. It is anticipated that the project will be completed by March 2012 and yield a return of 9,9% once fully let.
Octodec also recently purchased four properties in the Johannesburg CBD for R90,2 million at an average initial yield of 10,0%.
“We will continue to seek further opportunities to enhance the quality of our portfolio,” says Wapnick.
The acquisition of The Tannery Industrial Park is subject to competition authorities approval, which is expected to be during July 2011.
Business News Sector Tags: Property|