Spearhead betting on Cape Town to flourish
Nick Wilson
--------------------------------------------------------------------------------
E-Mail article Print-Friendly
Property Correspondent
JSE-listed property loan stock company Spearhead said yesterday that it had R500m worth of retail, industrial and office property development projects on the drawing board.
The Cape Town-based company, which is confident about the future performance of these types of properties, said it would also make R200m worth of property acquisitions in the near future.
SpearheadÆs in-house analyst, Ilan Kaplan, said yesterday that the group believed interest rates were unlikely to move much more than 50 basis points up or down.
ôThis is now the general perception in the market and it has created considerable confidence,ö he said.
CEO Mike Flax said the development projects included three industrial properties, two office blocks and two retail centres. All of the developments are in Cape Town.
Flax said he could not elaborate on new acquisitions at the moment.
ôWe are very bullish about the office and industrial markets in Cape Town. In Cape Town the fundamentals are very positive. Vacancy rates in offices and industrial properties are dropping substantially and there is a growing shortage of quality space in those markets.ö
He said while they believed retail was ôwell-suppliedö in Cape Town, they were confident there was room for their new outlet retail concept.
Spearhead is developing two retail properties, one a small shopping centre called Old Oak Village in Bellville, with a value of R12m; the other a R150m outlet retail village called Sable Square opposite Century City.
Flax said Sable Square would be an open-air shopping village and SAÆs first ôoutlet centreö. The centre will consist of branded stores such as Guess or Tommy Hilfiger.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
