| Wed 20 Sep 2006, 10:00 | | Martprop - Strong market boosts Martprop lease ren |
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Martprop - Strong market boosts Martprop lease renewals & tenant retentions
Martprop Property Limited
Share Code: MTP
ISIN: ZAE000037271
Strong property fundamentals were continuing to boost retention of tenants with
expiring leases in Martprop"s R2,6 billion portfolio, managing director Roger
Perkin said today.
"The firm demand for quality, well located assets has pegged vacancies in the
portfolio at 1,5%," he said. "It is also underpinning retention of expiring
leases at above 80%. "
Martprop, soon to be renamed SA Corporate Real Estate Fund, concluded leases to
a value of R404 million and recorded retention of 83% of all leases that expired
in the year to July 31, 2006.
Perkin said the fund would be negotiating leases or renewals on more than 20% of
the portfolio in 2007 and was well positioned for rental growth in the current
climate. It was confident that unitholders can anticipate distributions to grow
in line with sector expectations in the years ahead.
"Significant new lettings and renewals have been struck at market-related
rentals, but these are much improved on previous rentals and are mainly on five-
and 10-year terms. Given the present strong demand and limited supply, tenants
are making increasing use of consultants to secure properties on best possible
terms over longer periods than was the norm."
Perkin said that, with the completion of an 18 000m2 development in Tygerberg
Business Park, at Parow, Cape Town, the fund"s top 10 tenants now accounted for
more than 38% of the lettable space in the portfolio.
The top 10 which occupy mainly modern industrial properties are The Fuel
Logistics Group, the Grindrod transport and logistics group, Mr Price, Autoparts
Distributors, Bell Equipment, Universal Print Group, Babcock Africa, TFD
Network, ABB Industry and Sandown Motor Holdings.
Following the completion of recent developments and purchases worth more than
R350 million, industrial properties now make up 64% of the total portfolio,
retail accounts for 26% and offices for 10%.
Perkin said the pending change in name to SA Corporate Real Estate Fund
identified with its new direction as it pursued active expansion and positioned
itself to attract significant domestic and foreign equity investment.
The change follows the acquisition of the fund"s management company by Old
Mutual Property Group.
20 September 2006
Date: 20/09/2006 10:00:03 AM Produced by the JSE SENS Department
