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Logistics operators sustain demand for large industrial space

While the manufacturing sector in South Africa remains under pressure, logistics operators are among those who continue to demonstrate a strong demand for large industrial space in key nodes which are central to their operations.

Comments Seamus Daly, leasing, sales and investment broker for JHI Properties in the Western Cape: “Good access to major highways and a central location convenient to their networks and customers is crucial. Generally, modern space which offers flexibility and large yards for their transport fleets is the most sought after.”

Specialising in the industrial sector, Daly has in recent years concluded a number of transactions for industrial space in Sheffield Business Park in Lansdowne Road, Cape Town – a secure, multi-use commercial node well-positioned between the city CBD and Cape Town International Airport.

Ideally located close to the N7 interchange, with quick access to all major freeways, including the N2, M5, R300 and N1, this 50ha precinct has become a preferred choice for a wide range of logistics, warehousing, light manufacturing and services industries. Large national companies which have established distribution centres in Sheffield Business Park include Pick n Pay, Spar and Kwikot. For staff the park is conveniently close to residential suburbs, shopping centres and various forms of transport.

Bakers SA Limited develops new Cape Town depot
Daly has concluded two sales transactions of sites in Sheffield Business Park on behalf of Bakers SA Limited, a national transport and logistics company which caters for linehaul operations and local distribution of high-volume goods as well as containerised cargo and warehousing.

Says Daly: “The company purchased its first site, comprising 1.3ha through JHI Properties in 2011 in order to develop its own warehousing and offices. When the adjacent vacant site of approximately 1ha recently became available, they acquired this as well and consolidated the two erven. The combined sales value of the two erven is approximately R18 million.”

The first site incorporates the new development which was completed in 11 months, on 23 May 2014. This includes buildings of approximately 5000sqm, comprising two highbay warehouses, workshop, washbay, training centre, staff recreational facilities, drivers’ lounge and showers, as well as an executive floor which includes a lifestyle centre for client meetings and directors’ and travelling managers’ facilities. The second site will afford Bakers SA Limited a large parking area ideal for their operation and the potential to develop further warehousing.

Comments Abdool Kader Tayob, chief executive of Bakers SA Limited: “This new depot will benefit our linehaul from the Eastern Cape, Johannesburg and Durban as well as a national client who will make use of our new warehouse facility, while the company as a whole will enjoy increased security plus an improved workshop and washbay facilities for our vehicles and trailers.

“In addition, the modern new facility will also improve service delivery to our customers and provide a more efficient and appealing work environment for our drivers. A better quality of existing clients’ stock will be delivered – clean, and we are assured of effective security control of loaded vehicles,” he says.

Bakers occupies 13 sites around South Africa and has an expanding fleet of 42 truck trailers. The company is currently exploring opportunities to expand into the SADC (Southern African Development Community) region.

Adds Daly: “There are still a few remaining erven available for industrial use situated within Sheffield Business Park, comprising sites of 3000 to 4000sqm – which can be combined. These are selling for R1000 per square metre.” Warehouses and factories can be developed to tenants’ requirements.”

JHI Properties is also marketing large warehousing space in Nourse Avenue in Epping, which is also centrally well positioned in Cape Town with easy access to major routes. This comprises a warehouse of 8044sqm which can be split into 4017sqm and 4027sqm. Available at a rental of R52 per square metre, the warehousing has an eave height of 12m with a FM2 flat floor and two loading docks, as well as an office component.

For further information contact Seamus Daly of JHI Properties on 021 4181640 or 082 449 7314 or email

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