Emira takes transfer of industrial midi-unit park in Cape Town

An aerial view of Northpoint Industrial Park in Cape Town.

Emira Property Fund has taken transfer of Northpoint Industrial Park, which it acquired for R103 million through recycling capital from the disposal of two of its older industrial assets.

The property transferred to Emira in March 2022 after the company signed the purchase agreement in 2020 with transfer delayed due to Covid-19.

Northpoint is a recently developed midi-unit industrial park in Brackenfell in Cape Town’s northern suburbs. Spanning 16 415m2 of gross lettable area in 10 units ranging in size from 1 300m2 to 2 366m2, it is 100% let with tenants including PEP, Van Schaik, and Storage King.

We are pleased to acquire this fully let property at an accretive yield. Emira’s industrial portfolio is divided between single-tenant light industrial and warehouse facilities and multi-tenant midi- and mini-unit industrial parks. This property aligns well with Emira’s strategy to invest in well-located, modern, multi-tenant parks”, commented Geoff Jennett, CEO of Emira Property Fund.

The REIT favours midi-unit industrial assets because they support a broad tenant base, adding to portfolio diversification and reducing single counterparty risk. Ulana van Biljon, COO of Emira Property Fund, says the industrial sub-sector had remained resilient with low vacancies and demand for space is on the rise.

In Emira’s experience, midi-unit industrial premises of between 1 000m2 and 5 000m2 attract a more established tenant profile, which equates to stronger and longer lease covenants. They also require less intensive management than similar-sized properties with mini-units. The Emira team is well skilled in managing this asset class”, she adds.

Northpoint is centrally located in Brackenfell Industrial and easily accessible from the N1 via the Okavango offramp.