CBS substantially increased its property portfolio by the acquisition of properties mainly in Gauteng from the Yieldgro group, including 46% of The Wedge Shopping Centre, in Morningside, and Wedgefield, in Bryanston. CBS’s portfolio now comprises Western Cape (42%), Gauteng (35%), and Kwazulu-Natal (23%).
Director Martin Ettin reports that CBS aims at growing the size and quality of its portfolio to ensure sustainable income streams for its investors. However, with the current interest rates, there is an enormous appetite for investment properties and quality properties are difficult to come by. CBS is therefore also focused on man- aging its existing portfolio and growing the distribution. CBS director Gary Fisher, who is based in Cape Town, reports that some of the CBS Western Cape properties are under consideration for redevelopment.
He says that, among others, the CBS’s landmark property, Amway house, at the entrance of the city’s V&A Waterfront, is being considered for redevelopment work.
CBS also intends to move its head office into the Wale street property. CBS director Derek Greenberg says that the company has completed redevelopment work at the Wedge Shopping Centre where it built a 4 000-m2 store for the retail DIY outlet, Mica, which has already started trading from its new premises. This project expanded the shopping centre’s capacity to 17 000 m2, he adds.
Commenting on the property market, Green- berg says that the retail sector has grown signifi- cantly and reports that most of CBS’s national tenants require additional space. Given the strong property fundamentals, CBS believes that the listed-property sector will continue to be attractive to both institutional and private investors alike.