JSE-listed property investment company Putprop has reported a reduction in vacancies as companies return to offices.
Office vacancies reached 1.2% at the end of December from 2.3% in June 2021, the company said in a Sens announcement on Wednesday.
Putprop said certain big corporates were returning to the office and had adopted a hybrid model — that is a combination of office and remote working.
“This will be essential for the commercial segment to recover from its current extremely precarious position,” said the company.
As of June 2021, the company owned 16 industrial, commercial, retail and residential properties valued at over R1bn in Gauteng, Mpumalanga and the North West. Its properties include Summit Place, Grand Central, Menlyn Villas, Montana Park and Secunda Value Mart, among others.
Putprop said the office portfolio was the only one with vacancies during the six months to December 31.
The company acquired 22 Impala Road in Chislehurston, Sandton, a tenanted office building with a four-year lease in place. Putprop uses a portion of this property as its head office.
“We expect trading conditions during the next reporting period to continue to be challenging in respect of lease renewals, as well as sourcing of tenants. We are fortunate that the expiry profile reflects less than 8% expiring in the next 12 months, which limits our risk,” said the company.
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