»
May 14, 2008:
Industrial developments worth R330m are currently under way for one of SA's largest listed property funds.
Expansion projects for Bell Equipment and Supply Chain Services, part of the Fuel Logistics Group, are in Jet Park on the East Rand, says Peter Sparks, executive director of SA Corporate Real Estate Fund, which is managed by Old Mutual Investment Group Property Investments.
He says a R190m, 18,800sq m facility for Bell Equipment on a 9,2 hectare site it has leased since 1995, will provide a distribution warehouse and ancillary parts and exchange store, component repair workshop, preparation and paint bays, and offices.
"It is due for completion in October 2008 and will be leased for 12 years. Bell Equipment will also extend the lease it has on an adjacent property to expire at the same time as that for the new facility.
"The R57m development of a 10,000sq m sortation hall for Supply Chain Services, on a 10-year lease, is due for completion in June. It is complementary to their adjacent distribution facility and offices. It represents a joint initiative, along with a 30,000sq m distribution warehouse being developed by Old Mutual Investment Group Property Investments."
Sparks says Old Mutual Investment Group Property Investments is also overseeing a development in Cape Town, due for completion in September on a 31,247sq m site in Milner Road, Paarden Eiland.
Seven warehouses with offices and ranging in size from 1,500sq m to 3,450sq m are being built for letting on the open market.
Sparks says retail projects to meet demand from national operators in growing, under-serviced areas are progressing in Hammanskraal, Tshwane (Renbro Shopping Centre), Dzanani, Limpopo (Nzhele Shopping Centre) and Umlazi, Durban (Philani Valley Shopping Centre).
"They follow the creation of Hubyeni Shopping Centre at Elim, Limpopo, and Umlazi Mega City in Durban which have similar tenant profiles to the new projects and which have seen favourable rental and capital growth since opening in 2006 and 2007 respectively."
The Renbro Shopping Centre on the old Warmbaths road in Hammanskraal is being transformed into a community shopping centre and will be anchored by a 2,000sq m SuperSpar. It is due to open in September.
The Philani Valley Shopping Centre will serve the needs of Umlazi residents beyond the catchment area associated with Umlazi Mega City.
National tenants account for most of the space in the first phase of 32 stores over 10,900sq m. It will be anchored by a 2,600sq m SuperSpar and is due to open in August.
The R43m Nzhelele Valley Shopping Centre, in the Dzanani district, 35 kilometres from Louis Trichardt, Limpopo, will open shortly and will serve a catchment area of 19,000 households. Anchored by a 1,584sq m Spar store, it has 37 shops, mostly tenanted by national chains.
Sparks says The Colony, a centre in Hillcrest, Durban, is being revamped.
For more information contact Peter Sparks on 082 462 5887.
