JSE-listed Redefine Properties continues to thrive amid a subdued environment, as a result of its strategy of investing where it believes the best market opportunities lie, while also catering to the demands of tenants.
This is according to CEO Andrew Konig, who cautioned that, especially in Rosebank, “cognisance must be taken of the future impact on municipal infrastructure and roads that are not being upgraded by council”.
However, notwithstanding the challenges, he said astute investments based on an understanding of trends shaping the market and the needs of tenants continues to give Redefine “a decided edge”.
It is for this reason that tenant retention remains one of the company’s top priorities.
Redefine is focusing on improving its occupancy levels by rejuvenating premises to ensure they remain relevant to users' needs, Redefine commercial asset manager Pieter Strydom said on Wednesday.
With flexible working spaces quickly becoming a growing trend, Redefine identified an opportunity at its 15-storey Rosebank Link, comprising some 20 000 m2 of space, which is now fully let, with shared workspace provider We Work as its primary tenant.
The Rosebank Link was one of four property updates showcased to investors and media during a tour on Wednesday.
During the tour, Strydom highlighted that while Sandton has a “steady oversupply of office space”, well-located P-grade green buildings remain in demand, keeping vacancies in that market segment low.
Traffic remains a key detractor for Sandton, despite new buildings offering amenities, transport accessibility and efficient green building designs.
Rosebank, on the other hand, remains a “high-demand area” with a shortage of available P-grade offices, Strydom said.
During the site visit, investors and media were updated on developments at Pybus, in Sandton, which now showcases a barista café and free-to-use boardroom facilities. The Pybus comprises 11 500 m2 of space, of which 74% is already let.
Another of the properties shown to investors was 155 West, also in Sandton, which has been refurbished to an A-grade specification.
“Although lower Sandton is not showing strong demand, 155 West is bucking the trend with its great value for money proposition translating into a good demand for the building,” Strydom said during a short tour of the building.
The development, which was completed at the start of this month, is 60% let.
Meanwhile, Park Central, which is a residential development in Rosebank that will be catering to a shift in lifestyle trends, is due for completion on May 31.
Park Central comprises 20 storeys and boasts 159 luxury apartments. Unsold units will be rented out, with Redefine intending to enter the residential space in this growth node, Strydom commented.