Property development firm Growthpoint Properties has launched a R150-million client-driven industrial property development and redevelopment programme in Gauteng.
In Meadowbrook, Germiston, Growthpoint was developing a R100-million state-of-the-art facility for multinational group Grundfos. The new building would span 10 000 m2, with expansion possibilities. The tailor-made structure would be ready for Grundfos’ occupation in May.
The facility would comprise 2 500 m2 of office space and 7 500 m2 of high-tech, high-spec warehousing for Grundfos’ South African business. The remaining phase, which could accommodate another 7 500 m2, was gaining strong interest.
Further, the property developer was developing a R17-million warehouse, office and showroom spanning some 1 800 m2 for power tool designer and developer TSS Tools in Elandsfontein, Johannesburg.
Growthpoint was also redeveloping an underperforming asset, which industrial team portfolio manager Zubeida Mather said enabled the company to secure a five-year lease at market rentals. In keeping with its energy efficient drive, the property developer would add low-energy lighting to the project, which began in January and would be complete before the end of the year.
In addition, in Sandton, Growthpoint was redeveloping a 1 453 m2 portion of the premises for electrical service organisation ICR Electrical.
“From this high-profile position at our redeveloped Commerce Corner, ICR Electrical will enjoy excellent visibility and easy access both to the N1 and N3 highways. Commerce Corner provides ICR with a central location which also benefits from convenient access,” Joanne Scott of Growthpoint’s industrial property team stated.
The company would invest R13-million in the redevelopment to improve the asset and meet ICR Electrical’s power needs.
Meanwhile, the programme also included the extension of the Avon Justine building, at the Growthpoint Industrial Estate, in Meadowdale, Gauteng, by 2 080 m2 to 13 869 m2.
The company indicated that the expansion, which was due for completion in May, would provide Avon Justine with a new aerosol room, built to international specifications, as well as added storage and warehousing space.
Growthpoint’s industrial division head Engelbert Binedell stated that, despite the prevailing sentiment being negative, manufacturing data was flat and limited industrial property purchase opportunities were boosted by high demand and unrealistic seller expectations.
He added that the company’s industrial properties were essentially full, despite difficult economic conditions.
The greatest challenge to the development project was that Avon Justine would continue operating throughout the construction process. However, Leon Labuschagne of Growthpoint Properties’s development division assured that extensive planning would ensure minimal disruption to the company’s operation during the development.
Mather indicated that the Growthpoint Industrial Estate continues to be a prime industrial location. “This industrial park has shown steady growth and only 40 000 m2 of bulk remains available for development.”
Growthpoint currently had a pipeline of 75 000 m2 of industrial development in Gauteng.