Leases for 288,000m2 expired from 1 July to 31 December 2008, and ApexHi renewed 86% of these in 458 separate leasing deals worth R803-million. The average rental increased from R49,59/m2 on expiry to R57,25/m2 on renewal, an average increase in rental of 15%. Retail rentals on renewal increased 20%, while office rentals increased 11% and industrial rentals increased 22%.

A further 50,000m2 was let to 214 new tenants, valued at R264,9-million, at an average rental of R70,52/m2. This increased the total portfolio rental to R48,65/m2.

ApexHi MD David Rice says the majority of new lettings were in the retail portfolio, where refurbishments and extensions of retail centres were being completed. “A large amount of space which was vacant during the renovation process has been substantially let at an average of R81,31/m2,” he says.

Vacancies reduced by 24,000m2 from 30 June 2008, largely as a result of the letting of 10,000m2 at the extended Golden Walk, and the disposal of underperforming properties. In the retail sector, vacancies decreased from 7,9% to 5,4% in the period.

“The R9,2-billion property portfolio keeps the leasing teams busy. A total of 672 leases were concluded in the period, which is more than five leases per working day. During this period the portfolio was marketed on eProp by property management company Broll.

“In the six months to end June 2009, the team will deal with a further 326,000m2 of space which expires in the period, which we regard as potential upside as rentals should increase on renewal. In addition, the remainder of the retail refurbishments will be completed in the period, which will further boost the retail letting and boost the rentals in this sector,” says Rice.