Despite the economic slump elsewhere in South Africa, the Port Elizabeth commercial property market is showing a marked buoyancy, in particular with interest shown by investors from across the country in industrial properties in the city.
Commercial property brokerage North Point Commercial has concluded a R140-million sale of an industrial warehousing complex in New Brighton, with the transfer taking place later this month. The complex, with two national tenants in the automotive and logistics sectors, was bought as an investment property by a JSE-listed fund, North Point Group managing director Justin Smith said.
“This has been a sizeable investment for Port Elizabeth, and we are experiencing a lot of activity in the city. There is a buoyancy in the market, with a lot of interest from outside the city by out-of-town purchasers. These investors have a big appetite for commercial and industrial properties. It is important to secure the correct investment stock, with industrial properties still dominating the PE market,” Smith said.
Other larger sales by North Point Commercial in the past year include a retail and government tenanted building in Govan Mbeki Avenue for R51-million, a New Brighton retail complex for R25-million, an industrial complex in New Brighton for R30-million, an A-grade warehouse in Walmer for R15-million, a R10.6-million manufacturing facility in Deal Party and a R9-million property sale in North End.
North Point Commercial was started by Smith only 18 months ago, and has grown to a total amount of concluded sales of just over R350-million and 58 000 square metres of leasing in the Eastern Cape. “I did not expect us to grow so rapidly from just two brokers and one admin staff member. We had to get larger premises. We are now up to six brokers and all the brokers are highly experienced with years of knowledge and established networks in the industry.
“We remain optimistic about Port Elizabeth for the balance of the year, with a lot of positive movement and enquiries for commercial properties being experienced,” Smith said.
The company also handles leasing and property management on behalf of corporate clients and investors. Based in Port Elizabeth, the company operates nationally, with investment stock acquired from across South Africa. Smith said good stock was getting harder to come by.
“We are finding that top prices are achieved in the market place, especially with the sales of self-users (owner-occupied). These sales tend to deliver more aggressive yields, with the buyers wanting to obtain and own their own property.
“He said the leasing segment of the business has also grown rapidly and experienced good rates per square metre in the Port Elizabeth region.
Weekend Post Article by Cindy Preller