Growthpoint has completed phase 2 of its Arterial Industrial Estate in Cape Town, adding 21,831m2 of lettable space.
The expansion is part of the group’s strategy to increase its logistics and industrial assets, now representing 20% of its total SA portfolio.
The new phase includes six warehouse units, ranging from 2,945m2 to 5,713m2, with two units already leased. Growthpoint’s logistics portfolio now focuses heavily on modern facilities, which make up about half of its gross lettable area.
“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 Growthpoint Western Cape regional head Wouter de Vos.
According to MSCI, the industrial property sector recorded a total return of 13.2% last year — the highest in the property sector — reflecting strong underlying fundamentals.
In 2025, the sector faces some headwinds from rising costs and softening cross-border trade. However, the move towards reshoring and regional supply chains is expected to drive demand for advanced local warehouses and manufacturing facilities.
The industrial estate is located in Blackheath, closer to key transport routes and Cape Town International Airport, making it a prime location for logistics operations. It features solar panels and a four-star Green Star certification.
“Growthpoint is reporting strong performance in its logistics and industrial portfolio, fuelled by high occupancy rates and a strategic focus on modern facilities,” said Growthpoint’s head of asset management, logistics and industrial property, Errol Taylor.
The full development cost about R400m.
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