A new industrial development has been launched in Port Elizabeth at a time when the city is experiencing a serious lack of industrial property.
Estate agents have been warning since late last year that a shortage of industrial land and warehousing space could stall the city's commercial property boom.
In previous reports they claimed that most vacant retail and industrial space had been taken up and that the municipality was not making enough industrial land available.
The 87-hectare development is adjacent to the Coastal Bricks factory in Greenbushes and will comprise 89 industrial plots once the final phase is released in July this year.
"People always thought Greenbushes was too far out, but the strong residential growth in the western suburbs has brought the area closer to Port Elizabeth," said Jacques Bellingan, who is developing the property.
This is a trend that Bellingan anticipated when he opened Coastal Bricks in the area 14 years ago. He said yesterday that more developers would turn to this area due to the lack of suitable land in other parts in the city.
"We feel that this area is going to be the city's next industrial hub, especially for building suppliers, who want to cash in on the area's many housing developments.
"Many people don't want to be in existing industrial areas like Markman and Deal Party due to security issues. It is still relatively safe here," he said.
Among the benefits of this site, Bellingan said, was that it was only a few kilometres from the N2 via Cape Road and that it was close to an informal settlement of about 2 000 houses that made access to labour easy.
Demand for the properties had been strong and potential buyers were not only interested in setting up warehouses, but also small industries of 400m², he said.
Marios van Dongen of Bowman Olivier Commercial Properties said: "Because of the major shortage of land, businesses are forced to go that way (Greenbushes). However, it will take some time for the area to develop."
He said most people still preferred Deal Party as a business location as it was close to the harbour, rail and highways, but "there is no space available". Other popular industrial areas included Korsten and Sidwell, Van Dongen said.
The Coega IDZ is another piece of prime industrial land, but is limited in scope for local businesses.
Coega Development Corporation spokesman Vuyelwa Qinga-Vika said the IDZ had been conceived and developed to focus on foreign direct investment (FDI), manufacturing and services projects.
"But companies that we are negotiating with or who have shown an interest are not all bringing FDI projects.
"Each case that knocks on our doors is treated on its own merits, bearing in mind that the strategic intent for Coega in the broader macro-economic strategy of the country is in attracting FDI and that remains the overriding mandate for Coega," she said.
Eastern Province Herald
Publisher: I-Net Bridge
Source: I-Net Bridge
