Property Flash


August 21 2023

Inospace, the unlisted last-mile logistics park owner and operator, has launched an outsourced fulfilment warehouse facility which it says will help small and medium-sized e-commerce businesses with their warehousing and distribution needs. 

The company launched the facility at its Island Works Logistics Park at Paarden Eiland in Cape Town. 

A second facility will open in early 2024 in Midrand.  

Inospace, led by CEO Rael Levitt, spent around R20m in revamping the space to convert it to an e-commerce fulfilment warehouse and distribution facility, and developing software to manage the e-commerce fulfilment function. 

Businesses can now rent a fixed warehouse space and or daily scalable outsourced warehouse space and then Inospace will pack and dispatch orders on their behalf. 

Levitt, a former auctioneer, said the the company’s digital platform allowed for seamless integration into existing e-commerce platforms such as Shopify. Users can schedule deliveries and ship products directly to their customers, whether they are other businesses or end-user consumers. 

 “Our business model is based on the view that traditional landlordism is being disrupted and real estate requires customer-centric solutions and value-adding services. An integrated fulfilment facility provides e-commerce businesses with a seamless logistics ecosystem,” said Levitt.  

He formed Inospace after being inspired the success of JSE-listed German group, Sirius Real Estate. Sirius owns business parks in Germany and the UK as well as a storage business. Inospace was founded in 2017 with one asset worth R30m. Its portfolio is now worth R3bn. Inospace owns and operates 52 logistics properties in Cape Town and Johannesburg, which are home to more than 1 500 tenants who distribute goods directly to consumers and other businesses.

Inospace’s automated fulfilment process begins right after users have placed an order on Inospace’s platform. The company provides storage for the user’s stock until an order is placed. Inospace then processes the order, packs and dispatches it to the end-user on behalf of the customer for a fee. 

The platform automatically selects the lowest pre-negotiated courier prices and the most favourable terms based on customers’ requirements. 

Inospace has created two pricing models, a starter plan of R5 250 for up to 100 orders per month and a custom plan with costs based on usage and orders that exceed 100 orders a month. 

Inospace has appointed Dean Venske, to head the logistics team and in-house warehouse managers.

“Venske and the Inospace team are tapping into a strategic and unique opportunity at the intersection of community and shared services in warehousing, inventory management and fulfilment,” said Levitt. 

E-commerce businesses often face fluctuating inventory sizes and seasonal demand challenges. As such, Inospace’s all-in-one logistics solutions allow companies to adapt and scale their operations, based on changing supply and demand requirements. 

“By launching an all-in-one logistics solution, Inospace is providing a much-needed boost to growing e-commerce businesses in South Africa. This levels the playing field for smaller businesses who can compete more effectively with larger companies,” said the company’s chief marketing and product officer, Jodi Sher.

Other property funds, many of them listed are also looking to invest in logistics facilities of varied sizes and quality, targeting varied clients. Equites Property Fund and Fortress Real Estate Investments are two logistics-invested groups listed on the JSE.

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