Giba Business Estate, the R1.9bn project that broke ground in August, is the largest light industrial and logistics development in Durban’s outer west region in more than three years.
The development marks the opening up of new land for industrial development that was until recently zoned agricultural.
The project will create jobs in the phased construction period. Once complete in November 2024 it will house as many as 4,461 permanent employees. The development will also significantly boost the eThekwini region’s economic output.
“Lack of available stock in the area drives demand for light industrial and logistics development,” said Shaaz Moosa, a developer at Sultex Investments.
Sultex Holdings is a black-owned company, made up of local Durban businesspeople who are undertaking the project.
Moosa said land is scarce in and around Durban, with the closest availability being outside Durban itself, including in Cato Ridge, Hammarsdale, Dube Tradeport and Stanger.
The Westmead Industrial Park and the Mahogany Ridge Industrial Park lie to the northeast of Giba, making it a natural extension of the sought-after industrial node along the busy Durban-Gauteng corridor.
Other major projects within the outer west area include the development of the Cato Ridge dry port and logistics hub, further development of the Hammarsdale precinct and Westown, a mixed-use property and lifestyle development situated off the N3 between Durban and Pietermaritzburg.
According to Frank Reardon, a director of Strategic Property Solutions, there is strong demand for well-located logistic facilities from local and international businesses for industrial space in the greater Durban area.
Centrally sited near Pinetown, the new Giba Business Estate brings to market the first greenfield industrial estate in this node for many years, he said.
“Significant infrastructure upgrades on the N3 and private sector investments in key assets such as the Durban container terminal and rail lines will continue to drive the industrial property surge,” said Reardon.
Giba is earmarked as one of eThekwini municipality’s key catalytic projects, which will see the development of 220,000m² over 22 sites offering light industry and warehousing facilities.
Moosa said land parcels range from 7,000m² to 29,000m², enabling logistics companies and manufacturing businesses to construct their own developments to suit their specific needs.
Work on infrastructure and platforms for phase one has begun, with completion scheduled for July 2024.
eThekwini mayor Mxolisi Kaunda said catalyst projects such as Giba stimulate ongoing redevelopments — much like Cornubia and Riverhorse Valley north of the city — and the proposed Automotive Supplier Park to the south.
“The Giba Business Estate development is an important part of the city’s 10-point port pity industrial plan which will not only begin to reindustrialise the city but ensure continued sustainable economic growth for the region,” said Kaunda.
Reardon said industrial property vacancies are close to zero, and new developments in the north, west and south of the city should see accelerated demand and increases in achieved rental rates.”
He said rentals vary depending on size, locality and quality of the warehousing/logistics facility. Modern high-quality warehouses in different localities having been asking rentals of about R75/m2-R90/m2, with some even higher than that.
New warehousing and logistics facilities generally command rentals ranging from R95/m² — R125/m². With growing demand for space and scarcity of land in the area, it has also become more common for property owners to also charge R10/m²-R25/m² for yard space, said Reardon.
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