News
Posted on 2022-06-17
The JSE All Property Index closed at 7 799 on Wednesday evening.
Growthpoint Properties,
with 22% of its office GLA currently located in various buildings in
Sandton, has reported increased vacancies from 19.9% at FY21 to 21% at
HY22 in its recent trading statement. However, the REIT has flagged
“sporadic green shoots” in the struggling sector. While the economy is
driving some of its tenants to continue reducing their office space, the
initial sentiment that offices would no longer be required is wavering
with hybrid work patterns set to continue. Growthpoint says that
employees of its larger tenants are returning to their offices under
different strategies; some on a full-time basis with others on a
rotational system and its smaller tenants, who previously vacated their
offices, have started to return to the market.
The Western Cape
remains the most expensive province to rent with its average
residential rental increasing from R9 142 in Q1 2021 to R9 399 in Q1
2022, according to PayProp’s quarterly Rental Index. While 8 of SA’s 9
provinces reflected positive residential rental growth, with a 1.8%
increase between Q1 2021 and Q1 2022 bringing the national rental
average to R7 958 during Q1 2022 (Q1 2021: R7 819), Gauteng was the only
province to record negative rental growth during Q1 2022 with its
average rental decreasing by 0.1% (R11) to R8 379 during Q1 2022.
Mpumalanga recorded the highest rental growth rate in Q1 2022, 5.3%
year-on-year, with the province’s average rental sitting at around
R7 866 earlier this year.
Capital & Counties (Capco)
and Shaftesbury have reached an agreement on the terms of a recommended
all-share merger to form a ‘combined group’ i.e., Shaftesbury Capital
PLC, of which Shaftesbury shareholders will own 53% and Capco
shareholders 47%. The merger will bring together the two real estate
companies who are both located in some of the most iconic parts of
London’s West End to create a leading, mixed-use central London REIT
with a combined portfolio valued at approximately £5bn.
Industrials REIT
published its financial results for the year ended March 2022, marking
the conclusion of its 4-year conversion strategy to a specialist
multi-let industrial (MLI) business which now owns and operates a
portfolio of +- 650 000m2 of MLI assets across the UK. The REIT’s IFRS
profit before tax doubled to £107.5m (FY2021: £53m) which was driven by
MLI valuation uplifts of £89.5m compared to the £26.9m during the prior
year. The company’s board declared a total dividend for the year of 6.85
pence per share. Industrials REIT’s share price has increased by 11%
over the past year.
Cape Town has been rated as the most sustainable City in Africa
according to the Corporate Knights Sustainability Cities Index report.
The index, consisting of 12 quantitative indicators of environmental
sustainability performance including air quality, emissions, solid waste
generation, climate change resilience and sustainable policies,
includes 50 populous cities and mid-sized cities including Johannesburg,
Lagos, Dar es Salaam, Beijing, Berlin, Buenos Aires, Chicago, Istanbul,
London, Madrid, New York, and Sydney.
