THE innovative Eclipse Retail Park Sectional Title development in Parklands, Tableview on the Cape West Coast is making property market waves. Sectional Title ownership took the market by storm in the 70's and is still a popular route to property ownership. But it's application to date has been in residential accommodation and mini factory units.
The basic idea behind applying Sectional Title to retail space is that all the benefits of capital gains and a tradeable asset that accrue from ownership are inherent in the arrangement, while the property also generates an income stream says Graham Alexander of RE/MAX Property Associates, marketers of the development.
There are different permutations on this scenario he points out. For example, an owner could acquire the retail space through one company, then let it to another of his interests.
The lessee therefore becomes the investor's own "captive" tenant in a sense and one moreover, who delivers an income stream to the investor that would otherwise go to another landlord, thus ensuring the investor of a secure, good return from a tenant about whom the owner obviously has intimate knowledge. The tenant continues to benefit from tax allowances on his rental costs while the property continues to grow in value for the owner. "It's a win-win," says Alexander.
Mica Hardware (1800 square meters) and Jimmy Jungles (440 square meters) have bought into the concept thus far. Still available is 550 square meters either as a single unit or two, divided up into 300 and 250 squares respectively, selling at R4500 a square plus VAT.
Immediate neighbours are Spar, Planet Fitness, Furniture City, Nedbank and 711.
The units are constructed in double volume so occupiers can install a mezzanine level for extra storage space. There are also 109 parking bays in the secured complex in the heart of the Parklands multi-purpose housing, recreational, and commercial development which will have an estimated 23 000 homes and a population of 100 000 by next year, representing a substantial market catchment area for the retail park. Alexander believes the concept will gain wider acceptance.
Publisher: Cape Business News
Source: Cape Business News
Retail development making waves.
Posted On Wednesday, 02 April 2003 02:00 Published by eProperty News
THE innovative Eclipse Retail Park Sectional Title development in Parklands, Tableview on the Cape West Coast is making property market waves.
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