The Tower Property Fund continues to grow, and as part of the funds strategy to acquire A-grade properties, has recently taken transfer of two new office buildings.
The first building is the Sunclare office block which was purchased at a cost of R192 million. This purchase consists of the majority of sections of Sunclare, which is located on the corner of Protea Road and Dreyer Street in Claremont – just across the road from Cavendish Square.
Tower purchased the majority of this terrifically located building which is perfectly poised to capitalise on its location and offers competitive rentals to smaller and larger businesses wanting an entry to Claremont.
The other office building is 15 Wellington Road, situated in Parktown in Gauteng, which was purchased at a cost of R80.5 million.
Marc Edwards, CEO of the Tower Property Fund says that despite prevailing fears that office space in South Africa is experiencing high vacancies, Tower are not afraid to invest in well located office buildings. “As an example – the portion of the Sunclare building purchased by Tower is fully let, whilst Wellington Road is currently enjoying very low vacancies.”
Towers strategy of investing in well-location office, retail and industrial properties is paying dividends for investors. “This pipeline of properties is coming from the private sector where landlords are prepared to take a percentage of Tower shares as currency for the transaction. As Tower is a REIT, holding the shares provides vendors with capital gains tax relief as well as diversification from single property risks,” concludes Edwards.
Tower expect their total portfolio to increase to R3.5bn by June 2015