Inospace acquires its 26th business park

Posted On Tuesday, 06 October 2020 22:24 Published by
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The record-low interest rate and favourable lending environment has spurred Inospace, a leading owner and operator of business parks, into acquisition mode.

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And the company is pleased to announce that, subsequent to purchasing the 14 000 square metre Jagger Works building off Voortrekker Road in Goodwood, it has now added a R95-million, 20 000 square metre industrial site in Parow East, acquired from Arrowhead Properties, to its portfolio.

The property comprises four freehold buildings providing retail-style warehouses opposite Shoprite Park in the heart of Parow’s central business area. It is let to 19 tenants at a through rate rental of R42 per square metre. Customers include Beekman Canopies, BSC Repair Centre and Swartland Investments. Rael Levitt, Inospace’s Chief Executive Officer, said of the announcement: “This strategic purchase allows us to consolidate our presence in Cape Town’s Northern Suburbs. It provides an exciting opportunity for us in this vibrant and dynamic area of the city, as we continue to grow the business through selective acquisitions and delivery of our extensive refurbishment and redevelopment pipeline.”

The property is being acquired at a capital value of R4 785 per square metres and a net initial yield of 10%. The transaction, which will be renamed Tyger Works, brings to 26 the number of business parks operated by Inospace. This acquisition completes a purchase of three industrial parks properties in Cape Town’s Northern Suburbs, adding up to a total of 62 000 square metres of lettable space in Parow, Bellville and Goodwood. 

Levitt says the company sees opportunity in purchasing assets at below replacement value and with an immediate cash profit on rental income. “This new site ticks all our investment boxes. It is not only fully let at low rental rates, but is an industrial island wedged between shopping centres, a hotel, the UNISA campus and popular residential suburbs.” Inospace sees significant potential to reposition the park over the medium term, he adds.

Inospace has rapidly become South Africa’s leading owner of business parks by repositioning traditional industrial sites to offer a range of not only industrial but also office and storage spaces, all overlaid with a wide variety of free business services, facilities and flexible leases. “With the historically low interest rate, we are particularly active in areas where we can purchase income at yields comfortably above the borrowing rate,” Levitt says. 

Last modified on Thursday, 08 October 2020 15:32

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