Bigger property companies are batting smarter by taking advantage of low borrowing costs to refurbish their property portfolios
Many of the bigger property companies are taking advantage of the low cost of borrowing – due to the low interest rate – to refurbish their property portfolios.
Said Org Geldenhuys, MD of property development and mnanagemnent company, Abacus DIVISIONS: “This is a very clever move because, when the market does improve, they will in a better postion to attract calibre tenants – and possibly charge higher rentals.”
Geldenhuys also said that another reason for opting for reburbishing – rather than building new offices – is because thre is an over supply of office space currently.
“This is because, during the boom times, developers got a bit carried away – and a bit greedy, perhaps – and built too many offices. Certainly those tenants that are refurbishing their current buildings – and are also making them more asethically pleasing will have the added advantage of offering an element of desirablility to the marketplace. And being able to play the desirability card certainly proves a valuable edge.”