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The rise of SA's aerotropolis property market

24 Apr 2018

Airports are increasingly becoming magnetic centres of economic and industrial activity, giving rise to what has been termed “aerotropolis” – a new form of airport-centric commercial development – which is essentially transforming airports in major cities into “airport cities”. 

Airports are increasingly becoming magnetic centres of economic and industrial activity, giving rise to what has been termed “aerotropolis” – a new form of airport-centric commercial development – which is essentially transforming airports in major cities into “airport cities”.

Greg Nafte, Co-Director of Nexus Property Group (NPG) says that the rising demand for property in industrial nodes surrounding busy airports is due to the increasing value being placed by investors on a property’s proximity to key infrastructure and transport nodes. 

“We’re seeing an increased demand from both investors and owner-occupiers for industrial property, such as logistics, warehousing and distribution centres, in industrial nodes surrounding major airports as these areas are currently promising strong capital gains and are showing signs of major future expansion.” 

Nafte says that NPG recently received instruction from one of their private clients to auction a multi-unit industrial property located in a tightly held and sought after industrial node of Airport Industria, located a mere 2.5km from Cape Town International Airport. “Cape Town, being one of the most visited cities on the African continent, holds the promise for significant growth and airport-centric economic activity – something we have already seen take off in recent years. 

“Located at 36 Manhattan Road in Airport Industria, the property we are set to auction offers access from several main transport routes including Settlers Way, Borcherds Quary Road, Robert Sobukwe Road as well as the N1 and N2 highways, offering investors the opportunity to acquire a building in a thriving industrial area with strong earning potential.” 

Furthermore, additional income is generated off an MTN cell tower with a secure lease in place, adds Nafte. “This lease is long-term, expiring on 31 May 2027 with a 10-year option, and promises Gross Annual income of R78 000 per annum (escalation as per CPI).” 

The property is sectionalised into four units, covering 284m², 280m², 275m² and 272m² (vacant), respectively. “With an erf extent of 1 803m² and a gross lettable area of 1 111m², this property is 50% let and brings in an annual gross income of ±R304 000/annum. There are also two additional units available for rental. The total potential income of the property including the cellphone tower is approximately R680 000/annum),” says Nafte. 

To participate in the auction, please contact Greg Nafte on 083 414 4474 or gnafte@nexuspg.co.za. The auction will be held at Nexus Property Group, located at 125 Waterkant Street, Greenpoint, at 12h00 on Tuesday, 8 May 2018. For more information, visit www.nexusproperty.co.za.

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