SA’s largest listed property group, Growthpoint Properties, has invested R94m in The Grove business estate at Somerset West in an effort to boost its presence in the Western Cape.

Industrial division director Tyrone Govender said the acquisition of 17500m² now available for letting was Growthpoint’s first investment in the growing Somerset West node. Western Cape properties make up 20% of the value of its R29bn fund portfolio.

Two Somerset West properties, of 2992m² and 4 763m² for warehousing and distribution use or light industry, had already been transferred to Growthpoint by developers JKPG. Transfer of two more buildings of 3789m² and 5900m² in the transaction was expected by next month. The Grove Business Estate, developed by JKPG on part of 12,8ha it bought from AECI, is in a precinct on the Old Paardevlei Road that has seen considerable retail, commercial and industrial growth.

“The Growthpoint industrial portfolio in the Western Cape is largely centred on established nodes like Epping and Parow, and we have been seeking investment opportunities in other growing areas,” he said. “Rentals for quality industrial property have been increasing because of a shortage of stock. Also, infrastructure constraints, particularly electricity supply and road networks, have been prohibitive factors in the establishment of new industrial areas.

“The Helderberg Basin has shown good potential for growth, and The Grove business estate properties answer a need for quality industrial facilities with ample landscaping, good security and parking. They are conveniently located with easy access to the N2 and the R44 and within 20 minutes of Cape Town International Airport”.

Govender said the properties were adaptable with “excellent” N2 exposure.