SAC - SA Corporate - Increase In Industrial Rental
SAC
SAC
SAC - SA Corporate - Increase In Industrial Rentals Good News For SA
Corporate
SA Corporate Real Estate Fund
(formerly Martprop Property Fund)
(Incorporated in the Republic of South Africa)
Share Code: SAC & ISIN Code: ZAE000083614
A Collective Investment Scheme in property registered in terms of the
Collective Investment Schemes Control Act, No. 45 of 2002 and managed by SA
Corporate Real Estate Fund Managers Limited
(formerly Marriott Property Fund Managers Limited)
(Registration number 1994/009895/06)
("SA Corporate")
INCREASE IN INDUSTRIAL RENTALS GOOD NEWS FOR SA CORPORATE
Rental upliftment on new industrial leases signed by SA Corporate Real Estate
Fund in the six months to June 30 is very encouraging, says Craig Ewin, CEO
of SA Corporate.
Ewin says that five major industrial leases concluded in Gauteng for
warehouse space of 1 800m2 to 8 000m2 saw rental increases of 12,5% to 30%
while in KwaZulu-Natal, increases ranged from 16% to 47%, on five leases for
industrial space between 2 200m2 and 10 000m2. Rental upliftment on these
leases was a weighted average 28%, some 12% ahead of budget.
"These increases have brought rentals on the premises in line with the market
which is seeing gross rentals of R40m2 being achieved for better quality
industrial space with the R50m2 mark being seen for prime new industrial
developments.
Annual escalation rates are also on the rise as a result of the limited
availability and demand for quality premises and the impact that this having
on rental growth."
Ewin says the healthy increases in rentals in the industrial sector
underscore strong economic fundamentals and demand for well located
distribution and warehousing facilities.
"SA Corporate`s industrial portfolio continues to perform strongly with
vacancies of less than 0,5% of lettable area," he says.
SA Corporate Real Estate Fund will increase the industrial component of its
R7 billion portfolio to 33% through the R1 billion acquisition of
40 properties from the Collins Property Group.
Ends
Contact:
Craig Ewin - CEO
Tel - 031 366 1139
Mobile - 083 441 0530
Date: 06/07/2007 15:30:49 Produced by the JSE SENS Department.
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