Growthpoint Properties Limited has launched a programme of client-driven industrial property development and redevelopment valued at R150 million in Gauteng alone.
Engelbert Binedell, Growthpoint Properties Industrial Division Head, says: “Industrial property continues to deliver good performance. Despite the difficult economic conditions Growthpoint’s industrial properties are essentially full. Working with our clients, both longstanding and new, we are presently developing and redeveloping about 15,000sqm of industrial space in Gauteng creating tailor-made premises to facilitate their growth needs. Growthpoint has a pipeline of 75,000sqm of industrial development in the province.”
Growthpoint Properties is the largest South African listed property company with property assets valued over R50 billion found throughout South Africa. Its industrial property portfolio comprises 223 properties countrywide.
“Even though the prevailing sentiment is negative, manufacturing data is flat and limited industrial property purchase opportunities exist because of high demand and unrealistic seller expectations, Growthpoint can roll out redevelopments and developments to meet demand. We are in a unique position to mine opportunities in our existing portfolio,” says Binedell.
At Growthpoint Industrial Estate in Meadowdale, Growthpoint is extending the Avon Justine building by 2,080sqm, to a total 13,869sqm. The new space will provide Avon Justine with a new Aerosol room, built to international specifications, and added storage and warehousing space.
Due for completion in May 2013, the R15 million extension considers the environment and the client’s bottom line by including energy efficient lighting.
Perhaps the greatest challenge for this development project is that Avon Justine will continue operating throughout the construction process. Leon Labuschagne of Growthpoint Properties Development Division, says: “Extensive planning will ensure minimal disruption to Avon Justine’s operation during the development.”
“The Avon Justine extension is an exciting project that creates a win-win for both property owner and client. The development helps Avon Justine meet their business needs and increases the value of our property portfolio,” says Zubeida Mather, Portfolio Manager of Growthpoint’s industrial team.
She adds that Growthpoint Industrial Estate, with its excellent position and access, continues to be a prime industrial address. “This industrial park has shown steady growth and only 40,000sqm of bulk remains available for development.”
At Allen Road, Elandsfontein, Growthpoint is developing a R17 million warehouse, office and showroom spanning some 1,800sqm for power tool designer and developer TSS Tools. A new client for Growthpoint, TSS Tools needed a functional property with good exposure. This is exactly what Growthpoint is building in this established industrial node with good access to major highways.
Besides creating a purpose-built quality industrial property for TSS Tools, Growthpoint is also redeveloping an underperforming asset. “This enabled us to secure a five-year lease at market rentals,” says Mather. In keeping with its energy efficient drive, Growthpoint will add low energy lighting to this project which began in January 2013 and will be complete before the end of the year. Growthpoint also has 5,000sqm of developable bulk available on an adjacent property for another tenant-driven project.
On a prime site, on the corner of Bowling and South Roads in Sandton, Growthpoint is redeveloping a 1,453sqm portion of the premises for ICR Electrical. ICR electrical is one of the largest electrical service organisations in South Africa with extensive expertise covering all aspects of the electrical construction industry.
“From this high-profile position at our redeveloped Commerce Corner ICR Electrical will enjoy excellent visibility and easy access both to the N1 and N3 highways. Commerce Corner provides ICR with a central location which also benefits from convenient access,” says Joanne Scott of Growthpoint’s industrial property team.
Growthpoint is investing R13 million in the redevelopment to improve this asset and meet the needs of ICR Electrical.
In Meadowbrook, Germiston, Growthpoint is developing a R100 million state-of-the-art facility for multinational group Grundfos, one of the world’s leading pump manufacturers. The new building will span a significant 10,000sqm, with expansion possibilities. On arguably the most prominent site in Gauteng, the tailor-made structure will be ready for Grundfos’ occupation in May 2013.
The facility comprises 2,500sqm offices and 7,500sqm high-tech, high-spec warehousing for Grundfos’ South African business. It will be a groundbreaking green building, applying sustainable development practices. The remaining phase, which can accommodate another 7,500sqm, is already gaining strong interest.
“Growth, consolidation, modernising, positioning and cost savings through energy efficiency are among the top needs of many industrial companies right now. By working with our clients, we can provide them with buildings that meet these needs,” says Binedell.