Inospace has concluded an agreement to acquire an industrial-zoned park from a private property fund for R119 million.
Inospace’s assets are now worth R2.5 billion, following the recent announcement of a R1.25 billion transaction with Fortress REIT, which injected R640 million into the company’s niched property platform.
The 15 490m2 Creation Park, which boasts 38 units and is let to 28 businesses, will be renamed ‘Creation Works’, and repositioned into a last-mile delivery logistics park.
The parks’ long-term tenants include Krost Shelving, PNA Stationary, Foodserv Solutions, and Rebel Safety Gear.
“Creation Park is a strong asset located in a key urban location 15km from both central Cape Town and Tyger Valley. It is a perfect suburb for last-mile delivery and an area we have been trying to enter for two years”, comments Inospace Cape Director, Jacques Weber.
The transaction has been financed through a mix of cash and bank debt provided by Grindrod Bank which is expanding its Property Finance Business in the Western Cape.
“Inospace has built a high-quality portfolio, consisting of properties with increasing income returns over the medium term,” says Grindrod Bank, Property Finance’s Sven Koenig. “This is the type of entrepreneurial client that we are looking to grow within the Western Cape”.
