Cape Woodstock and Johannesburg sale-leaseback investments secured with leading tenant

Posted On Friday, 11 April 2008 02:00 Published by eProp Commercial Property News
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A 17,300m2 office development, The District, has been aquired by Growthpoint Properties Limited with Ogilvy secured as principal tenant

Rudolf Pienaar Growthpoint PropertiesThe District features strategically positioned offices, showrooms and restaurant areas, located on the periphery of the Cape Town CBD with exceptional views of Table Mountain, Signal Hill and Table Bay.

South Africa’s largest listed property company with property assets exceeding R24 billion and a market capitalisation of close to R20 billion, Growthpoint currently has in excess of R4 billion worth of property acquisitions of new developments and existing properties in the pipeline, including The District.

Growthpoint acquired this prime investment property for R260 million, which is scheduled for completion and occupation in April 2008.

The District will enhance Growthpoint’s portfolio of 420 quality properties country-wide. “The superior quality of the offices, the mixed-use elements and its accessible location were key factors in acquiring The District, which will contribute to increased rental income streams,” says Rudolf Pienaar, Growthpoint’s Divisional Director: Office Portfolio.

The District, comprises 14,800m2 of A-grade office space and 2,500m2 of showroom and restaurant space served by ample open and covered parking comprising of 416 basement bays and 260 open bays adjacent to the buildings. The District also offers easy access to major highways and transport systems from its strategic position bordered by Sir Lowry Road, Russel Street and New Market Street,

In addition to around-the-clock security, a highlight of the design is its vibrant central courtyard with showrooms and restaurants, creating a dynamic interaction area for those working in The District, and their visitors.

“With the regeneration of the Cape Town CBD, we saw Woodstock as the natural consequence thereto for development and we viewed Woodstock as the next location. The property is uniquely situated with high visibility and very accessible traffic routes.  It was on this basis that we decided to take the risk and invest and develop in Woodstock,” says Paul Berman, of developers Berman Brothers.

Berman explains that the objective was to address the demand for a quality, cutting edge, modern, A-grade office building which provided easy access, a high parking ratio and an attractive and dynamic working environment.  “We believe that we have achieved this objective and that The District will be a catalyst for further major developments in the Woodstock area and will rejuvenate and invigorate new energy into the area,” he notes.

It has been a privilege to deal with and be associated with Growthpoint, elaborates Berman who points out that at all times the highest level of integrity and commitment was exercised during the negotiations, the conclusion of the sale and thereafter.  “We have established a very close working relationship with Growthpoint and trust The District, which will be one of the jewels in the crown of its portfolio, will enhance the value of their portfolio and be a successful investment in their pursuit of excellence,” says Berman.

One of the largest marketing communications networks in the world, Ogilvy, has been secured as anchor tenant for The District.

Furthering the relationship between Growthpoint and its tenant Ogivly, in a separate transaction Growthpoint recently purchased Ogilvy’s head office in Bryanston, at an investment just shy of R100 million, on a leaseback agreement. Ogilvy has taken a 10-year lease over the entire 7,986m2 premises, which is located directly next to the N1 Highway. The property includes the potential for the development of 2,000m2 additional bulk and Growthpoint is currently investigation undertaking this expansion on behalf of Ogilvy.

 

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