This has been an unprecedented year for activity in the industrial property market according to Andy Beddow, Director of Baker Street Properties. Beddow says," Vacant industrial land has more than doubled in value in the past 12 to 18 months, with the average across the industrial areas now at +R500/mē.
There has been a very strong demand for existing industrial buildings on the back of increased building prices and the higher land prices. The average selling rate for existing buildings is closing in on the R2,000/mē (excl. VAT) mark.
"Baker Street has been involved in the sale of three large industrial sites recently, with the value of the sales totaling in excess of R60 million. The three sites involved are the Tibbett & Britten Distribution Centre in N'dabeni, the Old Lion Match Factory in Observatory and the Old Epic Oil Factory in N'dabeni.
"In all three cases the purchasers are developers who intend redeveloping the buildings into sectional title schemes with the option for users to either purchase or lease space. This will also open the way for investors to purchase units for their portfolios, which is becoming an increasingly popular investment alternative."
Beddow continues," The Tibbett & Britten buildings total 17,000 mē and once redeveloped will remain an industrial complex with sub-divided sections varying from 1,000 mē upwards. The site could also be redeveloped for a single user.
"The Old Epic Oil Factory located on Berkley Road will be redeveloped into predominantly commercial suites for office and studio users, along with a generous parking ratio. This site has fantastic access to the N1 and N2 via the M5 nearby.
"The Old Lion Match Factory located on the ever popular lower Main Road in Observatory will be a major commercial redevelopment with a substantial amount of office space being brought onto the market, along with an appropriate retail section and potentially a residential component.
"All three developments will start becoming available for occupation in the latter part of 2006. The three sites are also well located for access to major routes and have railway stations ideally placed within walking distance for staff."
Beddow concludes," We anticipate the buoyant commercial and industrial property market to continue in 2006. Watch the press early in 2006 for the formal launching of a variety of these schemes."
