Redefine Properties’ R200m Kwena Square in Little Falls, Roodepoort, officially launched this week. The convenience centre will house SA's first RocoMamas drive-thru.
The JSE All Property Index closed at 7 315 last night.
Since December 2019, property owners in South Africa’s office sector have lost an additional R1bn in annual rental across 54 nodes, according to SAPOA’s latest Office Vacancy Survey, with high vacancy rates applying downward pressure on asking rentals.
Rebosis Property Fund has called off the disposal of a portion of its office portfolio due to the conditions precedent not being met on time. In late 2021, the REIT announced that it had entered into negotiations with Ulricraft Proprietary Limited for the disposal of the majority of its office portfolio for an aggregate cash consideration of R6.32bn. In March this year, the amount was revised to R3.4bn for a reduced portion of the portfolio at a blended yield of 9.4%.
In its pre-close update, Hyprop informed investors that it has made progress in repositioning its local retail portfolio. The REIT reported an increase of 16% in its tenant turnover over the past five months when compared to 2021 with foot count across its portfolio 8.6% higher. Its retail vacancies decreased to 1.4% by end-May 2022, the lowest level since the start of the pandemic. It also reported a “remarkable improvement” in its entertainment tenants’ trading performance. Hyprop’s share price has increased by 32% over the past year.
In an analysis of the impact of the lockdown and the resurgence of the conventional workplace, data from Lightstone has revealed that business parks and secondary CBDs are leading the post-Covid-19 recovery in terms of activity, followed by industrial nodes, then primary CBDs and lastly, mixed residential. Using CIPC and VAT registration data to identify business nodes, the analysis included 40 metro suburbs as SA’s key business nodes.
Accelerate Property Fund published its financial results for the year ended March 2022 reporting an increase in its distributable income to R210.5m (FY21: R24.7m loss) and declaring a final distribution for the year of 21.98cps, equating to a 100% payout ratio. To date, the company has disposed of a total of R3.2bn of its assets, with the most recently completed disposal of its European portfolio which reduced its debt from R6bn to R4.6bn, lowered its LTV by around 6% from 48.5% to 42.8% and created cash reserves and undrawn debt facilities of R223m. The REIT’s share price has risen by 92% over the past year.
Both landlords and tenants need to make sure that they understand the terms set out in their lease agreements and that these comply with the Consumer Protection Act (CPA) where applicable says Barnard Incorporated.
To ‘terminate’ a lease agreement refers to when the fixed term of a lease agreement comes to an end or expires and neither party is willing to renew.
The ‘cancellation’ of a lease agreement is when one of the parties wants to exit the agreement prematurely i.e., before the termination date of the agreement.
A landlord may only cancel a lease agreement if his or her tenant has materially breached the terms of the lease agreement. The most common form of breach by a tenant is the failure to make payment for rent and other amounts due.
A landlord would, by written notice to the tenant, note the specific form of breach and provide the tenant with a set number of days to remedy the breach. Should the tenant fail to do so, the landlord may decide to cancel the lease agreement.
