Truworths is building a new R900 million Western Cape distribution centre in King Air Industria, Cape Town, an Atterbury Property and Old Mutual Properties development.
This development comes hot on the heels of the retailer last week reporting a 49.9 percent rise in annual profit, with its tetail sales growing by 9 percent to R18.5 billion.
The development project is a joint venture between King Air Industria and Truworths. Atterbury is the biggest owner of scarce, developable industrial land in Cape Town, a statement said Friday. This land has seen high demand recently due to many companies opting to develop large distribution centres.
Truworths said it would spend about R430m in the first phase, and the total development is expected to be completed in the 2025 financial year at a total estimated cost of R900m The new facility will accommodate growth in the business for at least the next 10 years, the group said.
Developed by Atterbury, Truworths will lease the facility and the new building will consolidate Truworths’s various Cape Town facilities under one roof.
This transaction was initiated by Tony Bales of Epping Property in 2019. The development’s 53 000 square metre initial phase consists of a 3 000 square metre office and 50 000 square metre warehouse, and includes the option to expand to 70 000 square metres.
Designed to an internationally recognised EDGE sustainability certification, the new development is due to break ground in October 2022 and the first phase is expected to be completed in September 2023.
Truworths chief financial officer Emanuel Cristaudo said: “As a result of business growth we have spent some time looking to build a larger, state of the art distribution centre to accommodate our future requirements. The proximity of King Air Industria and the business park benefits have led us to conclude an agreement with Atterbury which we also feel has a good understanding of our warehousing business needs.”
Atterbury’s development manager for King Air Industria Cape Town, Arno du Plessis said the development roll out of King Air Industria was making good progress and attracting high calibre of businesses.”
The 72 hectare King Air Industria Cape Town offers all the on-site infrastructure and around-the-clock security features for high-performance businesses. It is already home to the Courier Guy operating in a 10 112 square metre facility, and Morgan Cargo in a 7 500 square metre provincial head office building that also includes a specialised cold-storage facility.
“We are enjoying great momentum in the Western Cape leasing, not only at King Air Industria, but also at other properties including Richmond Park where the demand-driven development roll out is proceeding at an exciting pace,” said Mia Kitshoff, Atterbury leasing manager for the Western Cape.
Atterbury recently signed a deal with Takealot for a 20 400 square metre second phase of its Richmond Park distribution facility, which will take the facility’s total size to 44 000 square metres when it is completed in June 2023. It also signed hardware retailer Brights for 6 000 square metres, which will be completed in November 2023.
BUSINESS REPORT