Group achieves record low vacancies

Sanlam Properties, the asset management company for the Sanlam Group and Vukile property portfolios, has achieved record low vacancy rates for assets in these two funds. Vacancies in the R4,1bn Vukile property portfolio have been reduced to 2,9%, while Sanlam Life's R9,7bn property portfolio now stands at an all-time vacancy low of 1,8%.

These reductions are the outcome of Sanlam Properties' two-fold strategy to strengthen national tenancies: on the retail side it has placed specific focus on renewing, upgrading and expanding food chains such as Shoprite Checkers, Pick n Pay and Woolworths; in the office leasing business it has concentrated on stabilising the portfolio by canvassing, retaining and expanding lease terms with local and international blue chip companies.

The effects of these efforts are evidenced by Sanlam Properties' 2008 results. During this period a number of leases with a total contract value of R759m – a cumulative area of 325,000sq m – were renewed. A further 150,000sq m was let to new tenants; these new lettings contributed R438m contract value across the Vukile and Sanlam Life property portfolios.

Sanlam Properties MD, Banus van der Walt, says a number of upgrade and extension projects that the company undertook on behalf of the owners at retail centres further strengthened these results. These projects include East Rand Mall (R140m) and Mthata Circus Triangle (R83m) in the Sanlam Life portfolio, and Phoenix Mall (R27m), Dobsonville Mall (R17m) and Oshakati Game Centre (N$31m) in Namibia on behalf of Vukile.

Get commercial property news by email

Free alerts when we publish — pick a focus or get everything, unsubscribe in one click. Subscribe »