redefine investor site visit | rosebank and sandton april 2019 · redefine investor site visit |...

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Redefine investor site visit | Rosebank and Sandton April 2019

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Nodal overview – Rosebank and Sandton

Balancing the nodal challenges of high demand in one area and over-supply in another

Rosebank and Sandton

Rosebank: Trends Sandton: Trends

1) Rosebank remains a high-demand area with a shortage of available

P-grade offices1) Sandton has an over-supply of office space, but P-grade green buildings remain

in demand, keeping vacancy in that market segment low

2) Demand is driven by the proximity and accessibility of transport and amenities

within a safe walking distance 2) Nodal demand is driven by two factors: i) proximity to the Gautrain and

ii) consolidation and densification

3) Residential accommodation is available across various price points through the node 3) There is an increase in residential development in Sandton, with lower-

cost accommodation being developed

4) New builds offer efficient green-building designs 4) New builds offer efficient green-building designs

5) Cognisance must be taken of the future impact on municipal infrastructure and

roads that are not being upgraded by council5) Traffic remains the key detractor in the Sandton node

Nodal GLA: 428 224sqm Redefine GLA: 56 400sqm Nodal GLA: 1 922 054sqm Redefine GLA: 270 000sqm

Nodal vacancy: 37 923sqm Redefine vacancy 4 400sqm Nodal vacancy: 322 845sqm Redefine vacancy 45 000sqm*

Rosebank: Developments in progress Sandton: Developments

1) 140 Oxford Rd (Growthpoint) 35 000sqm 1) Leonardo (The Legacy Group) 15 000sqm (Offices)

2) Glenhove & Oxford (Barrow) 10 000sqm 2) Bidvest (Alchemy) 24 000sqm

3) Oxford Parks (IntaProp) 4 000 - 6 000sqm 3) Sandton Gate (Abland) 20 000sqm (Phase 1)

*The bulk of the vacancy is buildings

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Flexible workspaces

Trends in work patterns


1) The future? Studies have shown that by 2030, up to 13% of all employment in developed economies will be associated with flexible workspaces

2) Global connectivity drives flexible working, e.g. Regus has access to 60 million Wi-Fi hot spots globally

a) Connectivity is driving continuous working

b) Connectivity integrates a more holistic work/life balance that improves employee wellness

3) Redefine has exposure to four of the larger co-working businesses:

a) Flexible Workspace - nodal focus

b) The Business Exchange - Boutique upmarket entrepreneurs

c) Regus - Largest global footprint

d) WeWork - Global hubs

4) Europe and Australia are now incorporating regulations around co-working and how it aligns to business

Interesting statistics:

1) 79% of South African employee surveys see flexible working as the "new normal"

2) 62% of South African companies surveyed have a flexible working policy

a) 75% of these companies do so to reduce commute times

3) 85% of respondents reported an increase in business productivity based on flexible working

4) 54% of respondents identified work location as more important than the employer

All the statistics above are from ALW report

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Rosebank Link Rosebank and Sandton

A multi-faceted architectural icon

Asset class P Grade

GLA 20 000sqm

Development spend R712m

Completion October 2018

Rosebank Link is almost fully let, with WeWork as the primary tenant

% Let 99%

Vacancy GLA 187sqm

Rental levels R200 - R220 / sqm net

Initial yield 8.5%

Tenants

Covington SA

Brunswick

WeWork

Salient features

15-storey architectural icon

Glazed north and south facades

Pedestrian walkway

Executive roof gardens, podium-level

Gardens and parkade wall gardens

Parking ratio 4.8 bays per 100

Green Star rating 4 Star

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Rosebank Link

Notes


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2 Pybus

An exclusive address in a prestigious precinct


Asset class P Grade

GLA 11 500sqm


Scheduled completion April 2019

2 Pybus is engineered towards bespoke chambers for advocates,

who are known to be long-term, secure tenants

% Let 74%

Vacancy GLA 3 000sqm

Rental levels R208 / sqm net

Initial yield 8.0%

TenantsGroup 1 Advocates

Rivonia Group of Advocates

Salient features

A barista café

Boardroom facilities free of use to all

tenants

Parking ratio3.4 bays per 100, but linked access to

90 Rivonia Road

Green Star rating 4 Star

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2 Pybus

Notes


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An ideal fusion of form and function

155 West Rosebank and Sandton

Asset class A-grade

GLA 26 500sqm


Scheduled completion 1 April 2019

155 West has been refurbished to an A-grade specification in

keeping with the demand of lower Sandton.

% Let 60%

Vacancy GLA 11 800sqm

Rental levels R105 / sqm net

Development yield 3%

TenantsWeWork leases being finalised (10800sqm)

Signed agreements 4 550sqm

Salient features

Street-side café

Shared reception facilities and executive

boardrooms

Flexible floor plates

Parking ratio 5 bays per 100

Green Star rating N/A*

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155 West

Notes


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A sophisticated suburban lifestyle in a chic urban setting

Park Central Rosebank and Sandton

Asset class Upmarket residential apartments

Size 14 949sqm


Scheduled completion 31 May 2019

Construction period 23 months

Park Central resi-development caters to a shift in lifestyle trends, with a focus on chic,

urban living. Unsold units to be rented out.

% Sold 38% by value

% Let 0%

Sales rate R43 000 / sqm

Development yield 9.2%

Salient features

20-storey development (tallest residential development in Rosebank,

Johannesburg) with rooftop clubhouse and swimming pool

159 luxury apartments ranging from simplex studios to penthouses

A selection of units with exclusive access to a private sky garden

Direct access to urban greenbelt

Standby generator and water supply

Parking ratio One bay per bedroom

Green star ratingNone. But sustainable interventions such as LED lighting, centralised

air-conditioning, gas-heated central hot water and energy-efficient façade

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Park Central

Notes


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Going forward

Thriving in a subdued environment marked by low confidence

Tenant retention remains our top priority

Improving occupancy is a key focus

Constantly rejuvenating premises to ensure that they remain relevant to

the user’s needs

Adopting a flexible approach in preparing for challenging future lease

negotiations

Continued focus on deepening tenant and broker relationships, as well

as consistent customer experience

Improving operational sustainability through facilities and utilities

management interventions

Increasing the number of Green Star-rated buildings


redefine investor site visit | rosebank and sandton april 2019 · redefine investor site visit |...

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