Inospace has acquired a landmark A-grade industrial facility in Paarden Eiland for R75 million from the liquidators of Nautic Africa, a shipbuilder.
The vacant property, purchased at a rate of R8 900/m2, has a gross lettable area (GLA) of 8 400m2 under a 22-metre-high roof that offered space for warehousing and manufacturing of ships.
Built in 2016 and located across the road from one of Inospace’s properties, it is one of the tallest buildings in the industrial node with five storeys of office space and it will be repositioned and integrated into Inospace’s growing network of properties.
“The acquisition is in line with Inospace’s strategy to increase portfolio exposure to high-quality industrial real estate with a focus on last-mile logistics, urban logistics and warehousing within the Cape Town metropole,” says CEO Rael Levitt.
“We are looking at all options, such as adding another floor and introducing our range of products, like last-mile logistics spaces, workspaces, storage, and a fulfilment warehouse.”
The company has grown from one asset valued at R30 million in 2017 to more than R3 billion worth of assets under ownership, including the new acquisition. It has 53 properties in Cape Town and Johannesburg. Of these, 48 assets are last-mile logistics with the top five representing 38% of total portfolio value. The remaining four are single-tenanted traditional industrial properties, and these will be converted to multi-let parks as leases expire.
The acquisition of the Nautic Africa property further bolsters Inospace’s high-quality portfolio and will contribute meaningfully to the ongoing sustainable and consistent cashflows generated across the balance of its Cape Town portfolio. Inospace’s current portfolio occupancy sits at 98% across its half a million square metres.