Philip van der Berg, commercial development manager, believes that the slowing activity in the residential market is seeing investors looking at commercial property to diversify risk in their property portfolios.
"Whenever a slump occurs in the residential market, investors naturally consider a diversification of their property portfolio to include investments in the commercial sector."
With the current macro economic climate causing pressure in all property sectors, Van der Berg remains optimistic in respect of the short to mid-term prospects in the commercial property sector.
"One of the reasons for our positive outlook is that, from a retail perspective, current inflationary pressures are putting the margins of retailers under severe pressure and the main alternative for retailers to maintain and stimulate growth is to drive sales," says Van der Berg.
With two current commercial developments programmed for construction, the MSP Group plans several further commercial ventures this year. The flagship Madison Falls development in the Tyger Valley Waterfront development is completely sold out and will also become the new MSP headquarters once completed. According to Van der Berg their Gauteng office complex, Rhodes Park on Ontdekkers Road in Florida, still offers attractive investment opportunities.
Van der Berg confirms that one of its main commercial ventures to be launched this year is a major shopping centre development in Gugulethu, which will be strategically located to service not only the immediate community in Gugulethu but also Phillippi, Browns Farm, Nyanga, and other surrounding communities.
With a prime location on the Landsdowne and NY1 intersection, the centre will offer 18,000sq m of retail space to be anchored by a large contingent of national retailers.
Also in the pipeline is an upmarket small scale convenience retail centre on Faure Marine Drive in the Strand/Gordons Bay area, directly opposite the Greenways Golf Estate. Further commercial investment opportunities will include a retail centre in Sir Lowry's Pass Village and a large scale commercial and industrial development on the N2 in Somerset West.
For more information contact MSP Group on 021 461 1249 or send an email.
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