Despite an over-supply in the office market, Old Mutual is planning to develop six industrial parks, the company said on Tuesday.

"Excellent economic conditions favour investment in the industrial sector.

"Continuing domestic growth and space shortages in key locations underscore the need for projects offering premises for service and light industries, wholesaling, warehousing and distribution, transport depots and showrooms," said Ben Kodisang, managing director of Old Mutual Properties.

Large space users would be targeted for the developments in Johannesburg, Centurion, Durban and Cape Town.

Known as "distribution parks," the parks would be built in cubic instead of square metres and would have eight- instead of six-metre eaves. The whole development, all the cities included, would stretch over 50ha, said Kodisang.

In Centurion, on the development corridor between Johannesburg and Pretoria, 14ha would be developed and a facelift for a 2.2ha site at Montague Gardens in Cape Town was in the pipeline.

Two sites in Johannesburg - 10.7ha on the Heidelberg road and a  5.5ha in Yaldwin Street, Jet Park - also received the nod.

Sapa
 

Publisher: SAPA
Source: Inet Bridge