Development of one of JSE-listed real estate investment trust (Reit) Redefine Properties’ largest industrial developments, the 1.6-million square metre S&J Industrial Estate, in Germiston, is on track, with bulk infrastructure currently being rolled out.
The prime site is majority owned by Redefine, with property developer Abland also owning a stake.
The S&J Industrial Estate, once part of the larger Simmer & Jack mines, spans over 163 ha of developable land, located along the N3 highway, adjacent to the Geldenhuys interchange.
Construction work on the two main roads within the estate has now started.
“Once complete, these roads will unlock 118 ha of developable land of which 60% will be available for disposal to end-users,” Redefine national asset manager Johan Nell said at a showcase of Redefine’s industrial property portfolio, in Johannesburg, on Wednesday.
He noted that development rights secured could accommodate manufacturing, logistics and commercial uses.
“With a focus on logistics and light manufacturing, businesses operating from the new estate will be able to circumvent the congestion that frequently occurs at Gillooly’s interchange when travelling from and to Durban,” he said.
Nell stated that the acquisition met Redefine’s strategy of identifying quality property opportunities in desirable nodes, enabling the business to secure strong lease covenants.
Redefine has received enquiries for over 380 000 m² in industrial land sales and development to date.
“We expect market interest to increase further once the major bulk services and roads, due for completion in early 2018, are established,” he noted.
He added that the S&J development was set to create over 5 000 new jobs, as well as generate a substantial rates and taxes injection for the Ekurhuleni metro.
Nell told Engineering News Online that the S&J site was registered as a strategic urban development (SUD) project with the City of Ekurhuleni.
“Under the auspices of the SUD, the city will collaborate with registered SUDs at a strategic level to facilitate development. There is a massive focus on bringing business back into Ekurhuleni, where SUDs will partner with the city to establish a large [manufacturing and logistics] precinct,” he stated.
Nell said the accessibility and location of the site made S&J a gateway to the OR Tambo aerotropolis corridor, which is expected to attract strategic investments in key economic sectors, including manufacturing and centralised logistics.
The Aerotropolis project is one of Ekurhuleni’s priority projects as part of its five-year plan to bring about better lives for its residents.
The planned aerotropolis is a business hub focused on the development of industries that have customers around OR Tambo International Airport, or which have customers one flight away from Gauteng’s main international airport.