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Aug 15, 2007:
Construction of a R93m warehouse development is under way in Jet Park, an industrial and commercial township near OR Tambo International Airport.
The development, for leasing on the open market, will comprise two units of 10 000sq m each which could be further divided for letting flexibility.
"The shortage of good industrial property, coupled with a scarcity of land in popular areas and a buoyant economy, has led to a growth in rentals," says Thys van Heerden, the development originator at Old Mutual Investment Group Property Investments.
The Jet Park development, off Rudo Nell Street, will feature 8,5m eaves heights for high stacking, large areas of hardstanding for truck parking and manoeuvrability, and offices. It is due to be completed by mid-2008.
It is the third development to be undertaken by Old Mutual Investment Group Property Investments over the last year in response to strong demand for quality warehousing.
"The demand is reflected in the rapid take-up of space at R83m additions to Phumelela Park in Cape Town, and at the new R102m Mahogany Ridge Industrial Park at Pinetown near Durban," says Brent Wiltshire, business development executive at Old Mutual Investment Group Property Investments.
"The Phumelela Park additions of 28 000sq m were fully let within two months of completion. The last remaining space at the Mahogany Ridge Industrial Park, which offers a total of 35 000sq m, is under negotiation."
Wiltshire says Old Mutual is able to address demand for space through having vacant land in key areas of the major cities and is planning a second tenant-driven development in Jet Park.
"The Jet Park project maintains our development pipeline at above R2bn," says Wiltshire.
"The pipeline is part of our drive to grow assets under management to R100bn over the next five years."
