Continuing demand for quality space has seen the fully let sign go up on the entire Western Cape portfolio of industrial properties administered by Old Mutual Property Group, says Orin Varney, regional leasing manager.

“The demand, particularly from larger space users, has gained momentum over the last 18 months, “ says Varney. “As a result, all four Old Mutual industrial parks in greater Cape Town – Phumelela Park, Montague Gardens Industrial Park, Racecourse Gardens and Omupark in Epping - are now fully let. “

As a response to the demand, an R83 million expansion of Phumelela Park  at Montague Gardens is now under way, he says.  This development by Old Mutual Property Group will add another six units, ranging in size from 3 800m² on 5 ha of the park. It is due for completion in the first half of 2007 and will boost the total lettable area under roof in the Western Cape industrial portfolio to more than 150 000m².

Varney says the new space, at rentals from R38/m², will suit the medium to large user requiring some offices, high stacking, well sized yards for truck turning, and ease of access to major arterial routes.

“The expansion at Phumelela Park follows some significant lettings in Montague Gardens and Epping.  These have included 7 000m² for SBV Services,  3 800m²  for Cape Union Mart,  and a total of 4 000m² for  Chipkins, a Bidvest subdsiary, the Automobile Association and  Dried Fruit for All. “

Varney expects the expansion at Phumelela Park to meet some of the demand for medium to large space users.

He says Old Mutual owns a further 10 ha in Montague Gardens which can be developed in time according to market and tenant requirements.

Issued by Old Mutual Property Group

BY Michael Kerkhoff & Associates
INQUIRIES Orin Varney 021-530-4500
Mike Kerkhoff 021-424-5280