PROPERTY: Growthpoint Boosts Cape Presence
Recent Western Cape Business News
Growthpoint Properties, has boosted its presence in the Western Cape industrial market through a R94 million investment in The Grove Business Estate at Somerset West.
The acquisition, involving a total of 17 500m² now available for letting, is Growthpoint’s first investment in the growing Somerset West node, says the company’s industrial division director, Tyrone Govender. Growthpoint’s Western Cape properties represent 20% of the value of the total R29 billion fund portfolio.
Two Somerset West properties, offering 2 992m² and 4 763m² for warehousing and distribution use or light industry, have already been transferred to Growthpoint by the developers, JKPG. Transfer of a further two buildings of 3 789m² and 5 900m² in the transaction, facilitated by Wendy Viola of Viola Property Services, is expected by May.
The Grove Business Estate, developed by JKPG on part of 12,8 ha it bought from AECI, is on the Old Paardevlei Road and in a precinct that has seen considerable growth in retail, commercial and industrial sectors, says Govender.
“The Growthpoint industrial portfolio in the Western Cape is largely centred on established nodes like Epping and Parow, and we have been seeking investment opportunities in other growing areas. Rentals for quality industrial property have been increasing because of a shortage of stock and because infrastructure constraints, particularly electricity supply and road networks, have been prohibitive factors in the establishment of new industrial areas.
“The Helderberg Basin has shown good potential for growth, and The Grove Business Estate properties answer a need for quality industrial facilities with ample landscaping, good security and parking. They are conveniently located with easy access to the N2 and the R44 and within 20 minutes drive to Cape Town International Airport.
“Apart from offering excellent exposure on the N2, the properties are flexible and areas can be adapted to meet tenant requirements. Future access to the properties may be enhanced by building of another link on to the N2. This proposed feeder is under consideration. “
Govender says the newly acquired industrial properties are being let at R45/m² gross.
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