31 Dec 2007 - Accra Offices

Here is an example property snapshot for this quarter:

ACCRA OFFICE REAL ESTATE SNAPSHOT FOR Q4 2007

OVERVIEW

The historic CBD in Accra, Ghana runs along the north side of High Street. This is the location of Standard Chartered Bank, Ghana Commercial Bank and Barclays. To its eastern half it also houses many Government Ministries.

Because of congestion issues in this area of the city, much of the new development has focused to the north of High Street in the Ridge area, and particularly along Independence Avenue

Additionally there is a pocket of development in Airport City, adjacent to Accra International Airport.

Supply is limited and demand is good, particularly in the banking sector (many banks site their regional HQs in Accra). High Street, which has seen a decline of late, is likely to experience something of a revival if current road works improve access.

Note: Land in Accra is generally sold on leases for 50-years renewable from the State. Standard leasing terms referred to in this report relate to shorter-term occupationalleases.

COSTS

Prime: $12.00-18.00 /sq ft /year (rising)

Secondary: $7.00-9.00 /sq ft /year (static)

PRACTICES

Standard Lease Terms

Length: By negotiation and no standards. 6 months to 10 years.

Exit options: By negotiation, but leases can be very flexible in some circumstances.

Rent currency: Generally quoted in US$, but legally rent should be paid in GHC.

VAT: None.

Payment: 3 monthly in advance.

Indexation: In general rents are reviewed by negotiation every 2-years.

Statutory renewal right: None.

Landlord's responsibilities: Landlord is responsible for maintenance and insurance, normally covered by a service charge.

Tenant's responsibilities: See above.

Improvements: Permitted with landlord's consent and they remain the landlord's property at the lease end.

Reinstatement: Fair wear and tear accepted.

Subleasing: Only permitted with landlord's consent.

Surface area measurement: sq ft to include some of the common areas.

 

This report is for information only and cannot be relied upon in coming to any investment or other commercial decision. EMC Real Estate does not provide a warranty as to the accuracy of this information and disclaims any liability for any errors and omissions.

Reproduction of the contents of this publication including any maps and photographs is strictly prohibited without first getting the permission of EMC Real Estate.