An industrial estate in Somerset West has been acquired for R94m and involves a total of 17,500sq m now available for letting.
The Grove Business Estate at Somerset West is Growthpoint Properties Ltd's first investment in the growing Somerset West node, says the company's industrial division director, Tyrone Govender.
Growthpoint's Western Cape properties represent 20% of the value of the total R29bn fund portfolio.
Two Somerset West properties, offering 2,992sq m and 4,763sq m for warehousing and distribution use or light industry, have already been transferred to Growthpoint by the developers, JKPG. Transfer of a further two buildings of 3,789sq m and 5,900sq m in the transaction is expected by May.
The Grove Business Estate, developed by JKPG on part of 12,8 ha it bought from AECI, is on the Old Paardevlei Road and in a precinct that has seen considerable growth in retail, commercial and industrial sectors, says Govender.
"The Growthpoint industrial portfolio in the Western Cape is largely centred on established nodes like Epping and Parow, and we have been seeking investment opportunities in other growing areas. Rentals for quality industrial property have been increasing because of a shortage of stock and because infrastructure constraints, particularly electricity supply and road networks, have been prohibitive factors in the establishment of new industrial areas.
"The Helderberg Basin has shown good potential for growth."
"Apart from offering excellent exposure on the N2, the properties are flexible and areas can be adapted to meet tenant requirements. Future access to the properties may be enhanced by building of another link on to the N2. This proposed feeder is under consideration."
Govender says the newly acquired industrial properties are being let at R45/sq m gross.
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