PROPERTY FINANCE: Bank Provides Finance for Valuable Pretoria Upgrades
Recent Gauteng Business News
Octodec is a listed property loan stock company in the Real Estate Holdings sector with a market capitalisation of R1,25 billion. Listed in 1990, it is one of the oldest established funds in the sector. Its property investments are situated in Gauteng with 63% of the income received from retail shopping centres and the remainder from properties in the Pretoria and Johannesburg CBDs and surrounding areas.
The company strategically acquires properties with the aim of unlocking the value of the portfolio through development and refurbishment. The retail portfolio comprises of five prominent shopping centres including Killarney Mall and Woodmead Value Mart, Waverley Plaza, Elarduspark Shopping Centre and Gezina City. According to the company, the property portfolio is valued in excess of R3.5 billion.
Nedbank Corporate Property Finance is dedicated to adding value to South Africas capital by way of developing and upgrading existing properties and has approved funding for the development of Octodec properties located on the north-western periphery of the Pretoria CBD. The new retail development on the corners of Struben, van der Walt and Bloed streets will be known as the Cambridge Shopping Centre, says Ken Reynolds, regional executive: Nedbank Corporate Property Finance, Gauteng.
In close proximity to the Pretoria Zoo, this retail development is directly located across the road from the Bloed Street Mall and will be anchored by Cambridge Foods. Part of the Massmart Group, Cambridge Foods has signed a 10 year lease. The remainder of the new section of the centre has a GLA of 1039m² comprising of 12 shops ranging between 45m² and 130m² which will be mostly local line shops and some national franchises. Some existing tenants will be retained and the anchor will occupy approximately 61% of the total GLA while contributing approximately 38% of the total gross income. The other national tenant is Cash Crusaders.
There is a taxi rank directly west of Bloed Street Mall and in this part of the Pretoria CBD there is a huge demand for retail space due to the high pedestrian and commuter volume, says Reynolds.
Octodecs aim to transform vacant space to a desirable lettable condition with refurbishments and upgrades has resulted in the overall strengthening of our portfolio with more sought-after buildings. This has increased tenancies and rental growth, says Jeffrey Wapnick, Managing Director of Octodec. We are seeing positive performance across the portfolio, which continues to deliver sustainable distribution growth for investors.
Partnering with Octodec in a second development, Nedbank Corporate Property Finance has approved the finance to expand Tiny Town, a heritage site in Church Street, Arcadia. Tiny Town Phase II is a new development that offers 116 new residential units and represents an unusual residential leasing opportunity on the doorstep of the Union Buildings, comments Reynolds.
Built in 1929, Tiny Town was built as an artists colony with 14 units in a unique medium density development with a communal park-like garden. The dilapidated village was rehabilitated in 2009 to satisfy 21st century requirements as well as the changing character of the area, with respect to history and context. Tiny Town Phase II has a close proximity to the official seat of the South African government, adds Reynolds, which is likely to make the development a highly sought-after address when it is formally marketed in a years time.
Arcadia is a predominantly residential township in the east of Pretoria CBD. There is strong demand for clean and secure rental stock in the area. The property enjoys good exposure from passing traffic and is located within close proximity of the CBD of Pretoria and to all amenities. The newly developed residential building will be let to various tenants with short term lease agreements of one year.
Tiny Town Phase II is currently in the town planning phase, while Cambridge Shopping Centre is under construction and will be completed by the end of February 2013.
Nedbank has a long standing relationship with Jeffrey Wapnick and Octodec is renowned for its high-quality management, sound operational systems and a continuing pursuit to enhance operating efficiencies which makes them an excellent partner for future growth. As the market leader in the commercial property finance industry, Nedbank is proud to be part of both these significant property developments that will transform parts of the Pretoria area, concludes Reynolds.
Business News Sector Tags: Property|