JOHANNESBURG - Public Works new leasing policy was in the final stages of approval, said Delta Property Fund, the black-managed and significantly empowered dominant sovereign listed property fund.
Delta chief executive Sandile Nomvete said yesterday the policy would largely address Delta’s current 33.4 percent monthly leases, with nearly a third to national government continuing on a month-to-month basis in anticipation that the new policy would bring clarity on contractual rental escalations and lease terms.
The department largely entered into short term leases while it was developing the policy and expired leases continued on a month-to-month basis.
This resulted in some major listed property companies withdrawing from and disposing of their government-tenanted office property portfolio, with Delta in December 2015 acquiring about 60 percent of listed Redefine Properties’ “troublesome” government tenanted offices portfolio for R1.25 billion.
Nomvete said it was unlikely that the policy would change materially.