OWNER-OCCUPIERS
Funds have a riposte as property buy-back trend gathers steam
More companies are expected to become owner-occupiers of their head offices and secondary premises by buying back properties from listed landlords so they don’t have to pay monthly leases. But this is not all bad for listed property funds. Growthpoint Properties MD Estienne de Klerk says some large property groups are likely to develop and sell offices to tenants. He says large property funds are able to provide an array of services for tenants that go beyond being a traditional landlord. "In the early 2000s, sale and lease-back agreements were commonplace for companies and their landlords. The listed property sector was quite new and the funds in it were not that big yet and didn’t have that much stock. Large companies sold their head offices to listed funds and leased them back. Now corporations may ask a Growthpoint to develop an office and then the company will own the office. Growthpoint will gain development profit," he said. Investec announced recently that it would buy back ...
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