Rosh Pinah Properties had the opportunity to interview Ralph Wellhoner, Asset Manager at Sanlam Properties, on the business’s investment in The Point building in late 2018. The property, which was sold by Rosh Pinah Properties, is primely positioned just off the Brooklyn Circle at 1133 Jan Shoba Street on the corner of Fehrsen Street, in Brooklyn, Pretoria.
RP: Sanlam Properties bought The Point just on a year ago – Why the investment?
Good node, good tenant, portfolio currently has under exposure in the Brooklyn node.
RP: There is an oversupply of office space currently – do you think there is still value in the sector?
There is value in offices but it’s very node specific.
RP: How do you see the commercial property sector evolving in the near future?
There is definitely a consolidation of office space taking place. The cost of occupation is key for the cost-conscious tenant. Tenants are forced to become more efficient, thus taking less space per head. The result is that we have the oversupply in certain nodes.
RP: Where do you see potential for growth i.e. areas, types of property developments, size etc.?
There is potential in specific office nodes, convenient focussed retail, distribution centres and light industrial.
RP: What would it take for South Africa’s commercial property to flourish?
The economy needs to growth +3%.