JSE-listed Growthpoint Properties has reduced industrial vacancies in its Western Cape portfolio to a low 0.8%, further confirming a discernible resurgence in the industrial property market.
“We are seeing an increase in asking rentals in the Cape Town industrial property market as stock levels fall,” Timothy Irvine, Growthpoint regional asset manager for the Western Cape, said yesterday in a statement.
It said among Growthpoint’s most significant industrial leasing deals in the Mother City recently, it had signed leases with Meat Only at Greenfield Industrial Park and Pioneer Fishing for a Montague Gardens warehouse, each for some 7 000s square metres.
Meat Only is focused on deboning, packing and distributing quality pork. It supplies many of South Africa’s biggest food brands and exports its products across the continent.
“Cape Town’s industrial property market is distinguished by the fact that there is limited stock available. Existing Cape Town industrial areas are generally well located with access to main arterial roads, and new supply is limited which is part of what is driving the popularity and pricing of this property sector in the region,” said Irvine.
In September, for the full year period to end June, 2022 Growthpoint reported a 5.1% increase in distributable income per share of 155.6 cents for the reporting period.
Last month, a research report recently released by JLL, a services firm that specialises in real estate and investment management, found that the development of logistics properties has gained significant momentum countrywide over the past 10 or so years, driven by the growing global economy and the impact this has had on imports, exports, and retailers in South Africa.
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