Signatura

Hello, South Africa! How was everyone's morning? If you're looking for a place to stay in Cape Town, Signatura have some modern apartments for sale! You can find out more by visiting http://www.commercialpeople.co.za/author/EnverDeedat/

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10.6% distribution growth in Texton property fund

Texton Property Fund are betting the fund’s future growth on ‘tight management’, as the property counter announced a distribution growth of 85, 47 cents up by 10.6% for the year up to June 30^th.

Investors from Texton Property Investments purchased the management company of Vunani Property Fund for R117million last year, followed by a subsequent board reshuffle which Texton claims the benefits of this shakeup have been evident.

Benefits of the report for the financial year includes the fund increasing its acquisition activity by 40% in comparison to the previous year, which has been said to enhance the portfolio quality and income sustainability.

Marshan Franco

Good morning! Are you in search for a new home? George based, Marshan Franco have some spacious houses for sale. Don't miss out and view them all at http://www.commercialpeople.co.za/author/leonnpgen/

Have a great weekend! 

Prime Properties

Hello, Commercial People of South Africa! We hope you had a good morning. Are you looking for plots of land or a farm? Prime Properties have a variety of properties available which can be viewed on our website at http://commercialpeople.co.za/author/primeprop/

  

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Edcon Place purchased for R150million

Vunani Property Investment Fund (VPF) revealed on Thursday that it had acquired Edcon Place office block for R150.47million, in Johannesburg CBD.

Edcon Place quarters Edcon‚ owner of Edgars and CNA. Vunani purchased the property from Windfall 50 Properties.

Vunani was recently overtaken by Texton Property Investments. The deal is intended to expand Vunani from a small property fund with R2billion assets to a medium-sized fund.

The merger will see the CEO of Vunani Property Investment Fund, Rob Kane take up a shareholding in Cozifor, owning 100% of Texton and remaining as VPIF’s CEO.

Ms Marelise de Lange will also remain as the CFO of VPIF and will be a shareholder.

The Texton management team will include Gerard de Rauville, Angelique de Rauville, Thys van Heerden and Chick Legh.

In compliance with the new DTI BEE codes as well as the Property Charter, Texton will place a BBBEEE share scheme at VPIF level.

Developing Limpopo

The Limpopo province is the latest region to be a part of South Africa’s goal to develop rural areas across the country. The Ministry of Rural Development and Land Reform have been appointed to the forefront of rural progress.

South Africa has a major mining industry, with the country’s economic foundation having been built upon it. It delivered great amounts of income, establishing and attracting big-business ventures. This led to the modernisation of urban South Africa.

Presently, as part of South Africa’s goal, malls are now common in rural South Africa, with many more under construction. The Limpopo province is now a rural infrastructure buzz, being included in this new development.

The arrival of luxury shopping to Limpopo has benefitted young rural consumers as well as their families. This owes to convenience of close proximity and therefore saving money on travel.

Waterfall development to feature mixed commercial use

A waterfall development, spanning either side of the N1 highway from Allandale to Buccleuch Interchanges, has already secured developments valuing over R7billion. This makes this one of the fastest-off-the-ground mixed-use developments yet, of Gauteng.

Capital growth property fund, Attacq, which is widely involved in the development, claimed yesterday that the project is procuring rewards and expecting an eventful year as a number of its major developments are completed.

Situated midway, effectively closing the gap between Northern Sandton and Midrand on a 340 hectare acre tract of land lined by the Buccleuch, Kyalami and Woodmead suburbs, the Waterfall development boasts 1.753 million square metres of bulk for development. To date, over 175,000 square metres has already been developed.

Foreign buyers in South Africa's Luxury Real Estate Market

Cape Town’s ‘the Castle’, an imitation of Germany’s Lichtenstein Castle, a historic neo-Gothic fortress, houses a banquet hall lined with armour suits and stained windows, 12 bedrooms and a swimming pool. With views over the city's Hout Bay, there is a helipad and natural waterfall, accessible only by a private mountain road or helicopter.

‘The Castle’ is one of the most famous real estate landmarks of Cape Town, formerly a guest house and popular wedding reception venue.

However, it has now closed a deal during 2012, sold to a ‘high-profile’ Russian businessman for $2.2million.

This is just one piece of prime real estate acquired from the Cape Town market by a Russian. It has been claimed by local real estate agents that affluent Russian buyers have also purchased numerous other multi-million-dollar homes along the city's coast over the last several years, moving into the region's blend of sun, mountains and sea.

Residential property trending amongst investment trusts

Freedom Property Fund, the fourth property company listing on the Johannesburg Stock Exchange (JSE) this year, last week announced it had launched two major residential property developments in an attempt to boost the group’s portfolio.

Residential property exposure on the JSE was mostly represented by two sister companies, Octodec Investments and Premium Properties — However, this is set to shift as interest in the residential sector is accelerating amongst South Africa’s listed Real Estate Investment Trusts (REITs).

Retail assets such as shopping centres have been proving popular, however property funds are finding opportunities within housing.

Listed property unlikely to be affected by repo rate

A 25 basis point increase in the repo rate today, is unlikely to have any effect on South Africa's listed property sector.

The little interest rate hike will not impact longer-term funding rates as well as not ad to a slowdown in economic activity.

The Monetary Policy Committee’s (MPC) decision has allowed a breather ahead of the next meeting, where interest rates are likely to remain on hold if there are no major external shocks and if inflation expectations continue to be anchored, albeit at levels within the upper end of the SARB's targeted range.

The MPC does not have a mandate supporting economic growth, however it acknowledges the impact that its monetary policy decisions have on the wider economy. Against a backdrop of decelerating consumption expenditure, notably in the private sector and ongoing labour unrest, South Africa’s economy is not positioned to absorb significant interest rates hikes at present.

Therefore, interest rates are assumed to stay at lower levels for longer, which should provide support to present listed property valuations and contribute to motivating distribution growth throughout 2014 and 2015.

Global retailers look to South Africa

Recent research by CBRE has revealed global retailers as well as retail property investors are seizing advantage of South Africa's appeal as a competitive retail destination.

This is as it was reported that South Africa is presently ranked at 53 out of 61 countries in terms of international retailer presence - up 14% during 2013 – As reported by the director of research and marketing, Elaine Wilson at Broll Property Group, part of the CBRE affiliate network.

The increased ranking indicated growing interest from retailers around the world.

Johannesburg has the highest volume of global retailers and includes recent entrants such as City Chic, H&M, Lush and Lovisa.

Listed property outperforming

South Africa's listed property will remain to attract investors seeking firmer ground for trading.

Last year, equities outperformed the listed property sector as an asset class, although head of property funds, Keillen Ndlovun at Stanlib, delivered convincing reasons to include listed property in investors’ portfolios, during last month’s IPD SA conference in Sandton.

He quoted the Hebrew proverb, “He is not a full man who does not own a piece of land.”

Listed property of South Africa delivered total returns of 8.4% last year, overtaking cash and bonds. Bonds returned 0.6% as cash returned 5.2%. Last year however, since 2009, equities overtook listed property for the first time, with a 21.4% total return, over double the sector’s 8.4%. Over the previous 15 years, listed property has overtaken bonds by 13.3% each year, a direct consequence of the asset class’s ability to produce inflation-beating income growth.