The development, the first in the established Paarden Eiland node in years, is a response to market demand, says Peter Sparks, executive director of SA Corporate.

“Quality industrial space in the Cape Town metro area continues to be in short supply, and, as a result, rentals are growing,” says Sparks.  “There has been a positive market response to the development.”

He says the fund has held the 31 000m² site, used until recently for storing containers, since 1993.  The development will increase the fund’s exposure to Cape Town to 13% and marginally increase the industrial component from its current 33%.  The Paarden Eiland project follows completion by the fund last year of a R75 million warehouse and office complex in Tygerberg Business Park for The Fuel Group, a logistics services business.

Marco Bonafede, a leasing consultant at Old Mutual Investment Group Property Investments, says the complex, with a gross lettable area of 15 900m², will have access from Heatherton and Milner Roads in Paarden Eiland.

“It will be able to accommodate the requirements of both medium and larger users of space.  There will be three units of 1 500m² and two each of 3 450m² and of 2 250m².  These can be combined into units of 4 500m² or 6 900m².  Each has an office component of about 10% of the space.

Apart from being on the doorstep of the harbour, and close to Cape Town CBD, the complex will have quick access to major distribution routes such as the N1 and N7.”

The units will be built in line with international standards for A grade warehousing space, says Bonafede.

“Specifications include clear eaves heights to 8m for maximum racking, power floated floors, insulated roofs, abundant natural lighting, vehicular access through steel roller shutter doors, ample yard space and substantial truck turning circles.”

The development is expected to be ready for occupation in October 2008.

SA Corporate is managed by Old Mutual Investment Group Property Investments.