Recently-launched Quattro Fontane – believed to be the first boutique office park in the Irene area – has been sold out, just three months after its official launch, with the developers believing this could be a pre-cursor to the recovery of the office property market.
Said Org Geldenhuys, managing director of property development and marketing company, Abacus DIVISIONS:”This can only be described as an emerging trend – and perhaps a pre-cursor to a recovery for office market. All the stands are effectively sold,” he said.
Abacus DIVISIONS had initially received “firm offers” for all 19 stands one month after its launch, but Geldenhuys said the deals were now “through and confirmed”..
Quattro Fontane, situated adjacent to the Irene Village Mall and the popular Irene shopping mall, is the first parcel of land to be released by developers in the area, who have been given the go-ahead to develop a total of 500 000 square metres of land.
“Most stands at Quattro Fontane were purchased by owner occupiers, or investors having a tenant plan in mind -and not so much by speculators. This indicates that the market for smaller stands and office space is being driven largely by organic growth. Most buyers also preferred the smaller stands in the development -and those under 1 000m2 were sold out first.”
Commenting further, Geldenhuys said a number of leading property developers are squaring up to develop the 500 000 square metres of bulk in the greater Irene area, which has now been approved for “phased development”.
The development is named Irene Central and, once developed, total investment costs should be around R10 billion.
Continuing, Geldenhuys said that investors and big time developers are currently focusing on industrial developments – “which is experiencing the beginnings of an upwards cycle”.
However, he said, they have not gotten back into office developments on a large scale
“We have been surprised by the demand and frenzy to get stands. It was not
what we expected at this stage. Demand is driven by a mixture of prime
location and access, the size of the developments and positive sentiment in the market.
“On the back of the success with Quattro, we will be going to market with an industrial Estate and, from what we have seen, demand is for smaller stands . We will be placing stands on the market that range from 2000m2 to 20 000m2.”