May 19 2025 18:45
SOUTH AFRICA
Growthpoint has strategically grown its logistics and industrial assets from 15% to 20% of its total SA portfolio value in recent years, it said.
At the same time, Growthpoint increased its exposure to modern logistics warehouses, the backbone of Growthpoint’s long-term value creation approach in this sector. Modern logistics properties are and now represent approximately half of the portfolio’s gross lettable area. It is also focusing its investment in better performing, higher demand areas of the country, specifically in the Western Cape and KwaZulu-Natal.
A notable stride in this direction is the recent completion of Phase 2 of the Arterial Industrial Estate in Cape Town, adding quality capacity to the sought-after location. With 21,831 square metres of additional lettable space, Phase 2 has added six more warehouse units, ranging from 2,945 square metres to 5,713 square metres, catering to a variety of business needs. Together, both phases of the development represents a nearly R400m investment from Growthpoint.
The estate is experiencing strong demand, with two of the six units in Phase 2 already snapped up supported by strong tenant interest, highlighting the need for high-quality industrial space in the region. Phase 1 of Arterial Industrial Estate, spanning 19,741 square metres is fully let to top names in national and international industry.
“The completion of Arterial Industrial Estate’s Phase 2, and the good demand and take-up of available space it is experiencing, underscores the value we provide to businesses seeking efficient and sustainable industrial real estate solutions,” said Wouter de Vos, Growthpoint’s Regional Head: Western Cape.
“Growthpoint is reporting strong performance in its logistics and industrial portfolio, fuelled by high occupancy rates and a strategic focus on modern facilities. Our well-let logistics and industrial portfolio demonstrates the increasing demand for modern, strategically located facilities,” said Errol Taylor, Growthpoint’s Head of Asset Management, Logistics and Industrial Property.
The Arterial Industrial Estate is positioned in Blackheath, an industrial hub in Cape Town, offering exceptional access to key transportation routes, including the R300, N1, and N2 highways, as well as Cape Town International Airport and the region’s seaports. This prime location allows businesses to efficiently connect with both local and global markets.
The estate offers 24-hour security, flexible warehouse and office space, and a commitment to sustainability, including solar panels and a four-star Green Star certification from the Green Building Council of South Africa.
“This project reflects a continued and deliberate pivot toward better-performing, future-fit logistics assets and aligns with Growthpoint’s strategy of targeted investment and divestment, and development,” said Taylor.
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