Old Mutual Properties, a division of South African financial services giant Old Mutual plc (OML) is planning to develop six distribution parks offering a range of warehousing and factory space on 50 hectares in key locations in Johannesburg, Centurion, Durban and Cape Town, the company said.

The developments are aimed primarily at large space users and will be built to their requirements, said Ben Kodisang, managing director of Old Mutual Properties.

"Some speculative building to accommodate the mid-market is under consideration, given a swing in the property cycle that brings the industrial sector into play."

He said that while the office market remained in over-supply, excellent economic conditions favoured 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," he noted.

Three of the developments are proposed for Gauteng, two for greater Durban and one in Cape Town. The sites form part of Old Mutual's land holdings and are generally large enough for one tenant, yet easily sub-divisible for a number, depending on their requirements.

The developments are to be known as M? Distribution Parks because of greater volumes, with the focus being on cubic metres as opposed to square metres. This is created by having eight-metre-high eaves instead of the conventional six metres.

One of the largest properties is a 14-hectare site in Centurion, on the development corridor between Johannesburg and Pretoria. Its northern neighbour is the South African Mint and it is located between the highway, on its western boundary and the old Johannesburg road, on its eastern boundary. Erven range in size from 5,000m? to 2 hectares but can be consolidated to create larger stands.

Kodisang says two further M? Distribution Parks are proposed for greater Johannesburg. One is planned for 10.7 hectares on Heidelberg Road, south of Johannesburg, with excellent access to the arterial network, and the other on a 5.5-hectare site in Yaldwin Street, Jet Park, close to main Gauteng distribution routes around Johannesburg International Airport.

In Durban, one property is on 7.5 hectares in Goodwood Road, Mahogany Ridge, in Westmead, a short drive from the container harbour and close to the N3 to Pietermaritzburg.

The other M? Distribution Park in greater Durban will be on the 14-hectare Mount Edgecombe site which housed the temporary Sugar Mill Casino before the opening of the Sibaya project at Umdloti. Kodisang says this has the advantage of having roads and a 7,000 square metre warehouse already in place.

The Cape Town site earmarked for development is on 2.2 hecatres fronting onto Omuramba Road, Montague Gardens, an area which offers quick access to arterial routes and has grown rapidly in recent years.

Kodisang said the experience gained by Old Mutual Properties in pioneering industrial parks in South Africa would ensure the projects incorporated features that facilitate business. These, he says, included clear eaves heights suitable for maximum racking, ample yard space and truck turning circles, security, landscaping, versatile office layouts and abundant parking.

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Publisher: I-Net Bridge
Source: I-Net Bridge