Property development firm Growthpoint Properties has launched a R150-million client-driven industrial property development and redevelopment programme in Gauteng.
In Meadowbrook, Germiston, Growthpoint is developing a R100-million state-of-the-art facility for multinational group Grundfos. The new building will span 10 000 m2, with expansion possibilities. The tailor-made structure was to have been completed for Grundfos’s occupation in May.
The facility will comprise 2 500 m2 of office space and 7 500 m2 of high-tech, high-spec warehousing for Grundfos’s South African business. The remaining phase, which can accommodate another 7 500 m2, is gaining strong interest.
Further, the property developer is 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 is also redeveloping an under- performing asset, which industrial team portfolio manager Zubeida Mather says enables the company to secure a five-year lease at market rentals. In keeping with its energy efficient drive, the property developer will add low-energy lighting to the project, which began in January and will be complete before the end of the year.
In addition, in Sandton, Growthpoint is redeveloping a 1 453 m2 portion of the premises for electrical services 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 states.
The company will invest R13-million in the redevelopment to improve the asset and meet ICR Electrical’s power needs.
Meanwhile, the programme also includes 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 indicates that the expansion, which was due for completion in May, will provide Avon Justine with a new aerosol room, built to international specifications, as well as added storage and warehousing space.
Growthpoint industrial division head Engelbert Binedell states that, despite the prevailing sentiment being negative, manufacturing data is flat and limited industrial property purchase opportunities are boosted by high demand and unrealistic seller expectations.
He adds that the company’s industrial properties are essentially all occupied, despite difficult economic conditions.
The greatest challenge to the development project is that Avon Justine will continue operating throughout the construction process. However, Leon Labuschagne of Growthpoint Properties development division assures that extensive planning will ensure minimal disruption to the company’s operation during the development.
Mather indicates 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 has a pipeline of 75 000 m2 of industrial development in Gauteng.