The sale opens up the way for the development of the once dormant site. This is likely to involve between R300-R400m worth of development, over the next few years, with the beneficial effects of job creation, relating to construction and on-site activity and enhancements of the rates base to the city.

According to Kurt Gouwsventer, Bellville regional manager for JHI, this is a highly accessible and desirable 16 hectares of land, situated on the N1 highway between Paarden Eiland and Century City.

"There were 6 firm tenders for the entire landholding as a single sale, with the lowest tenderer at R29m, being 17% higher than the reserve price of R25m. The site is the only industrial land on the N1 available in the market, is 5 km from the new Cape Town Convention Centre and is an extremely viable alternative for a range of users who may currently be considering Century City, N1 city, Montague Gardens or Marconi Beam areas".

Gouwsventer adds that JHI has seen an increasingly strong property market, over the last 12 months. "The low level of interest rates, scarce supply and willingness of buyers to take more risk is resulting in the continued upward spiral. The industrial sector has now reached its best growth period in 15 years. Industrial areas in the Northern Suburbs have very little vacant land available for new developments and factory vacancies are at an all time low. Rental rates are increasing for the second time this year, with top rentals of around R45m2 being achieved – thereby, enabling property investors to experience better returns on their investments. Industrial warehouses and factories in areas such as Stikland and Brackenfell are being bought by owner-operators at above market-related values, indicating a continuation of the upward trend".

Gouwsventer concludes that generally the outlook for the next year remains positive, as more investors enter this area of the market.