Growthpoint Properties has started the next phase of the redevelopment of 7 Chain Avenue, in Montague Gardens, Cape Town, following the delivery of Phase 1 at the brownfield site, which was completed in the first quarter of 2024.

This initial phase saw the partial redevelopment of the underutilised, outdated specification buildings into 6 843 m² of subdivisible A-grade warehousing and logistics space.

Both units were fully let ahead of completion to Albatross Foods, a fast-moving consumer goods operator specialising in the import and distribution of food and beverage products across the Western Cape.

“The positive outcome of the first phase of the redevelopment validated both the location and our investment thesis for the site,” says Growthpoint Properties logistics and industrial asset management head Jason Reeves.

“Demand for high-quality industrial space in Montague Gardens remains exceptionally strong, with very limited vacancies in the node.

“The rapid take-up of Phase 1 reinforced our confidence to proceed with the next stage of redevelopment.”

Located directly opposite Indlovu Logistics Park, another Growthpoint property, the 7 Chain Avenue development addresses a different segment of the industrial market with a focus on flexible, mid-sized warehousing suited to a range of logistics, distribution and light industrial users.

Prior to redevelopment, this portion of the site comprised 10 906 m² of older C-grade warehousing, characterised by limited functionality, dated internal layouts and constrained yard areas.

Phase 2, which represents a further investment of around R135-million, will deliver two A-grade warehouse units with a combined gross lettable area of 10 674 m².

The redevelopment introduces improved yard layouts, generous internal stacking heights and food-grade flooring.

The redevelopment builds on Growthpoint’s broader South African portfolio strategy to increase its portfolio weighting towards sectors and regions expected to deliver better growth over the longer term.

As regards sectors, the group is specifically targeting logistics and retail property, and, when it comes to regions, it is focusing on key coastal metros, including KwaZulu-Natal and the Western Cape.

“Montague Gardens continues to demonstrate its resilience and desirability as an industrial location, underpinned by excellent access to Cape Town’s key transport routes and proximity to established commercial and residential areas,” says Growthpoint Western Cape regional head Wouter de Vos.

“By replacing outdated stock with efficient, modern facilities, we are able to enhance the overall quality of our portfolio.”

Construction is scheduled to start this month, with completion expected in November.