A SURGE in industrial property development in the greater Cape Town area is predicted in the coming months, reflecting the extent of the pick-up in the industrial market since the first quarter of the year.

Orin Varney, manager of Old Mutual Properties broking division, says it is investigating five potential developments, consisting of a total of more than 50000m², in Epping and Montague Gardens.

"There is no workable stock above 2500m² in key locations such as Montague Gardens, Paarden Eiland and Epping, and this is prompting the market to opt for new developments and refurbishments," says Varney.

He says development is being fuelled by acquisitions made by listed property companies and private investors. The prospects for refurbishment in longerestablished areas are increasing.

"The market will increasingly look to such areas for redevelopment opportunities as available land in locations closer to central Cape Town is taken up," he says.

He says there are still premises available in outlying areas such as Brackenfell and Bellville.

Meanwhile, in Gauteng, Old Mutual Properties has been working with the planning authorities for the Gauteng Rapid Rail Link project to facilitate rail siting in Midrand.

Ian Watt, Old Mutual Properties MD, says the preferred route for Gautrain crosses over the Midrand site of 65ha where the firm proposes to develop the Zonk'Izizwe shopping and family entertainment complex.

Zonk'Izizwe will be a mixeduse development, including retail, entertainment and arts and craft districts. There is approval for two family hotels totalling 580 rooms, a residential area with 380 apartments, a theme park and an office park.

It will have parking for 15000 cars and will generate about 30000 vehicle visits a day.

Watt says the development will span five years.

He says that clarity on the rail line and road links is essential to the project's progress.

"Once this clarity is obtained, we hope to be in a position to map out our phased approach to the development," he says.

Oct 09 2003 07:26:25:000AM  Business Day 1st Edition