Rabie Property Projects who, as always, are looking to generate capital for further development rather than to be long term property owners have sold their Platinum Park Industrial Park, for which Spearhead paid R12 million. This is a hi-tech industrial complex at Marconi Beam near Century City, just off Platinum and Bosmandam Roads, it has four state-of-the-art warehouse and office buildings, giving a total of 3 500m2 of rentable space on a 19 500m2 site.

The tenant list is prestigious and includes the head office of Driveshaft Centre, Debis Fleet Management, Sika International (manufacturers of sealants for commercial and industrial purposes), and Guth South Africa, whose business is concentrated on stainless steel equipment and accessories.

Average rentals currently being achieved at Platinum Park are in the region of R35 per m2.

Spearhead Chief Executive Officer, Mike Flax, said that the industrial precinct in which Platinum Park is sited is home to respected tenants such as the Fidelity Guards head office, the Berco Express head office and Telkom’s Technical Centre. The site, he added, is conveniently close to the new Spearhead led Sable Square development and other properties owned by it, Eagle Park and the Spearhead Business Park in Montague Gardens.

The Platinum Park site has 12 000m2 available for further development and Flax has already said that his team will start in the near future on 7 000m2 of warehouse and office space which will be designed to meet specific tenant requirements.

The second new Spearhead purchase is Noland House, a three storey, 3 400m2 A-Grade office complex with parking for 100 motorcars. It is sited opposite the bridge entrance across the Liesbeeck River and the 12 000m2 River Park development on the eastern boundary of Mowbray and the N2. The site was purchased from Rhodes School several years back and developed by Rabie Properties to tie in with a new attractive wetland area which is fed by the Liesbeeck River.

Noland House has superb views of Table Mountain’s Back Table and Devil’s Peak to the west and east of the St George’s Grammar playing fields. Its link with the N2, N1 and the M5 freeways give it quick access to all parts of Cape Town.

As at Platinum Park, says Flax, one of the big attractions of the new buy is that the tenants are sound, well-established companies with long-term leases. The list here included Noland Accountants and Auditors, Whirlpool (SA), Celestis Broker Services, the Maitland Trust Company and Meshcape Industries.

Flax said Spearhead had always had the aim of building up a portfolio in which the bulk of the properties are A-Grade and since listing in 1999 they have continually upgraded, growing their assets on average by 20% per annum. Recent sales in pursuit of this goal have included B and C-Grade properties such as Cashbank House, on the corners of St George and Adderley Street – for a price of R17 million.

Spearhead was recently described by Mariette Warner, Head of Fund Management for the Standard Bank’s Property Portfolio as probably the best run property loan stock company in South Africa. Flax himself has recently attributed much of the success to the company’s determination to retain an in house management and not to outsource to semi-independent managers.

"At Spearhead," he said, "there is complete goal congruency between our manager’s aims and the company’s goals."

For further information contact Mike Flax on 021 425 1000.