DURBAN — Collins Property Group, a privately owned diversified property company that is planning to develop one of the largest warehouses in KwaZulu-Natal, is concerned about the availability of new industrial land around Durban.

Director Murray Collins said that land for warehousing and industry was essential for a port city. “There is little available land left. You could go to Cato Ridge or Pietermaritzburg, but it will push up transport costs,” he said.

The 103-year-old firm is building a 61000m² warehouse in Prospecton valued at R270m, which will be leased by Pepkor Retail.

Commissioning of the warehouse, called the Pep Mega DC, is expected in November.

Collins said the site was “one of the last remaining zoned pieces of land of the magnitude that could accommodate a development of this size in greater Durban”.

The company has four more warehouses in the development pipeline for different clients, one in the city, two in Johannesburg and another in Cape Town.

Recently completed was a building for DHL in Cape Town and a distribution centre for International Healthcare Distributors in Longmeadow, Johannesburg.

Because industrial rentals are increasing and demand has been strong, the company has adopted a strategy of rejuvenating older buildings

Other developments include a Briardene sectional title complex of 14 units of between 350m² and 1200m², which sold out in a week.