Inospace Property Fund has completed the acquisition of several industrial parks in Cape Town and Johannesburg for R212 million, bringing the total value of the group’s portfolio to over R1 billion.
The company is the owner and operator of branded business parks which provide conventional and flexible workspaces.
“We have been on a bold yet strategic acquisition strategy over the past 14 months, and are delighted in particular to have recently acquired Table Bay Industrial Park which will be renamed The Island” commented Jacques Weber, Operational Director for Inospace.
The 24 000 square meter Island Centre was acquired from Ascension Properties for R115 million. With their recent acquisition from SA Corporate Real Estate, the eighteen-month old company has become the largest property owner in Paarden Eiland, which is one of the country’s most valuable industrial suburbs.
Weber explains that Inospace is part of a global trend of highly specialised real estate businesses taking advantage of a structural market shift, one that is moving towards a customer-first and flexible approach.
“Our company has had a record year in terms of transactional volumes and is focusing on a few nodes which are on the urban edge of South Africa’s major cities … Wynberg, Sandton is another key strategic node for us,” he explains.
“It’s on the doorstep of the country’s most expensive office and retail node, and we have seen excellent demand for our product in the area”.
The privately held company acquires large industrial sites and provides a range of free shared services including restaurants, business centres, meeting rooms and technology solutions.
Inospace typically buys larger buildings that can be transformed into multi-let parks comprising offices, studios, storage and traditional warehouse spaces. Unlike traditional real estate income funds, their model is different in that they acquire partially or fully vacant properties that are quickly turned into high-yielding, flexible-use products.
Weber explains that most property companies shy away from their operationally intensive model: “We are not a real estate fund nor are we a property manager”.
Inospace made its first foray into South African business parks when it acquired a site in Epping Industria Cape Town and shortly thereafter launched the Powder Mill in Ndabeni, 5km north of the City.
Their latest acquisition will bring the company’s sites to over twenty. The company seems to be bucking the trend of several larger property funds that have been under pressure through most of 2018, by showing phenomenal growth.
“This latest acquisition plays to the strengths of our integrated business model and track record of achieving efficiencies at sites we acquire in and around markets where we already have existing business parks” concluded Weber.