A strong demand for large warehousing space in the Cape Town area is seeing an uptake of such accommodation to buy and lease, particularly for logistics and storage and distribution businesses, says Daniel Etherington, senior broker of the Western Cape-based Pure Vision Properties, which has recently concluded a number of transactions in the region.
“With easy access to all major transport routes, the well-positioned and rapidly growing Northern Suburbs are an obvious choice.
“Coupled with this, the ongoing high demand for residential properties in these areas is fueling the general demand for industrial premises such as these, with the convenience of travelling to and from home and the work place. Taking into account Cape Town’s topography, these areas are also very convenient for owners or occupiers residing as far out as the Atlantic Seaboard.
“In Bellville Sacks Circle, one of the more established industrial nodes in the Western Cape, we recently concluded the sale of a warehouse of 24,870m2 on an erf size of 21,444m2 for R68 million (excluding VAT). The property has been acquired by a locally based group of investors for use by an affiliate company.”
The property will house a storage and distribution business which is relocating from Parow Industria and expanding from its current 10 000m2 facility. The property has been well-maintained, and features a large yard area, two 500 kva generators and a modern internal fire-detection system.
“Sacks Circle is one of the prime locations which is highly sought-after, increasingly so given that there are a number of redevelopments and brand new developments taking place, further boosting investor confidence and general demand in the area,” adds Etherington.
With easy access to the N1, N2 and Cape Town International Airport, as well as to the Bellville area in general, via Robert Sobukwe Road from the R300, this particular node is ideal for storage and distribution businesses, being well-placed for large truck access.
“Such is the demand that at present there is a shortage of stock, with properties of this size seldom becoming available.”
An additional deal concluded by Daniel Etherington, is a lease of an industrial property in Tygerberg Business Park Parow Industria , a modern area which offers leasing, selling and redevelopment opportunities and which is home to national and international brands like Parmalat and the Foschini Group.
Located on a large stand of 6.8 hectares and comprising a premises with a gross lettable area of 9,360m2 (consisting of warehousing of approximately 9,000m2 and offices of 360m2), the lease was concluded at a rate of R66/m2 – a good rate for quality accommodation of this calibre.
Says Etherington: “The space is being occupied by a new business, a film company, which was seeking a well-positioned location and this property fits the bill in every respect, being practically brand new and with the warehouse providing a generous internal height of close to 15 meters, that is ideal for set production.
“While there are two other tenants on the property, each warehouse is self-contained with own security entrance and with a full perimeter fence.
The area also benefits from the Parow Industrial Improvement District Association, a non-profit company which has made a significant difference in recent years with regard to the desirability of the overall area, with its general appearance being clean and appealing with visible security.