Of significance are the Redefine Properties acquisitions of high quality, single occupier industrial assets from reputable developers, Improvon and Zenprop. The number of properties transferred increased by 75% to 21 transactions in 2012.

Following the national trend in 2012, Gauteng transactions contributed 90% of the national total with activity concentrated primarily in the Eastern and Northern nodes of Johannesburg.

The Western Cape transaction activity contributed 8.2%, despite significantly reducing by 85% totalling R115 million in 2012 from R783 million in 2011.

The KwaZulu Natal province saw minimal investment transactional activity in the years under review, resulting in 1.5% contribution to the overall investment activity.

Although the rest of country sales saw transactional activity worth R176 million in 2011 (mainly in the Eastern Cape), there were no notable transactions in 2012 by the monitored funds.

Location continues to drive demand in the industrial sector with compression of yields for high quality assets. However prime industrial investment properties are in short supply. Again smaller funds are finding it difficult to secure good quality assets as most of these prime properties remain in the hands of the larger listed funds.

Source: Jones Lang Lasalle