Sectional title industrial mini warehouse and factory units are in high demand with investors. The reason for this is they usually are priced in the one to three million range where there is a large pool of investors who wish to diversify from residential to commercial property investments. These units are usually in secure complexes and have well-run body corporates, who effectively do most of the management for the investor.
These investments are usually an easy way to start a commercial or industrial property portfolio. There is always a strong demand for small industrial premises and these units attract premium rentals. Generally, the yields are higher than those achieved for residential property and leases are longer, with rental escalations of a minimum of eight percent per annum, compounded. Mostly, the tenants for these type of properties have turnovers of over two million per annum year and the business entities are companies, so they are not governed by the consumer protection act. Guy de la Porte has recently sold sectional title units in Prodev Park, Airport City and Prodev Park, Capricorn to private investors. The combined value of these properties is approximately R 5 Million (ex VAT).
More details of the units can be viewed here:
