Horizon Capital, which recently launched a new office development in Park Lane Office Park, Century City, has already achieved 75% presales for the first two buildings, and has decided to increase the development by a further R10 million to satisfy the demand from investors and tenants for small, top-quality sectional title office properties.
Now with a total sales value of approximately R55 million, the first phase of the development is expected to be complete at the end of 2012, and the second phase by mid-2013. The development offers investors an exceptional opportunity to purchase AAA-grade office property in a prime location at an attractive net yield of 9%. Prices start at approximately R2 million excluding VAT.
New developments such as this offer investors tax benefits in terms of the Income Tax Act. Section 13 quin allows new building owners to claim a portion of the cost of the property as a tax deduction, in addition to the usual expense and interest deductions.
In the latest SAPOA office vacancy survey, Century City recorded decreasing vacancy levels and far outperformed the Cape Town average. The growing popularity of Century City as an office destination is due to its convenient location, extensive public transport system, excellent security, and wide range of nearby amenities. Adding to its appeal is Century City Connect, an open access fibre network which will offer tenants the country’s fastest broadband data, voice and multi-media services.
This will be one of the first SA developments to provide green office space for smaller tenants, with a focus on energy and water efficiency in order to reduce operating costs and comply with current and future green building regulations. In addition to lower running costs, building occupants will benefit from an improved working environment, and Horizon Capital expects the buildings to command better rentals and capital values as a result.
Some of these innovations include energy-efficient lighting; movement and daylight sensors; good natural lighting and ventilation; electrical sub-metering; occupant controlled air-conditioning; water-efficient fittings; recycling facilities; and bike storage & shower facilities to encourage cycling to work.
The sectional title office units will range in size up to approximately 280m², with flexible leasing options resulting in space available to let as small as approximately 80m². There is also the option of purchasing or leasing an entire building of approximately 550m².
Horizon Capital is a “boutique” Commercial Property Investment House based in Cape Town. It provides a comprehensive service to its High Net Worth clients, specializing in building and managing directly-owned, diversified commercial property portfolios, with the objective of long-term creation of wealth. Horizon Capital has acquired excellent experience in the niche of smaller sectional title offices and has incorporated this understanding into the development in order to provide offices which will let easily and provide excellent long term investments.
Typical clients are successful business people who wish to diversify their investments to achieve a high yield along with capital growth, or retired people who wish to receive a monthly income while enjoying the capital security of property investment. Should you become one of Horizon Capital’s High Net Worth clients, the Park Lane development would be one of the many top-quality commercial property investment opportunities available to you. A full list of Horizon Capital’s service offering is available on request.
For further information, and for sales and leasing enquiries, please contact John Witter at Horizon Capital on 021 425 8586 or 082 906 2866.