Growthpoint develops for bullish Eastern Cape industrial property market

South Africa’s largest listed property company is developing two warehouses on the site, one of which is a refurbishment of the existing property, for a R20 million investment. Construction is already underway and completion in expected in March 2008.

The new warehouse will accommodate some 13,400m2 of space while the refurbished facility will provide 2,500m2 of prime warehousing.

Tyrone Govender, Growthpoint Properties Limited Industrial Divisional Director, notes that due to the growing economy of the area and the increased demand for space by industry, the refurbishment of older industrial premises is of particular benefit to property investors. “Refurbishment of industrial properties which were previously earning insignificant rentals, can result in achieving rentals in excess of R34/m2 on the revamped properties,” says Govender.

Growthpoint owns some 420 properties located throughout South Africa, of which 240 are industrial, comprising 2,3 million square metres of lettable area valued at R5,1 billion with a vacancy level of less than 2%. Of its total portfolio some 5% of its investment, by gross lettable area, is in the Eastern Cape.