Growthpoint Properties is pressing ahead with the next phase of its industrial repositioning at 7 Chain Avenue in Montague Gardens, Cape Town, extending its bet on a logistics node where demand for well-located warehouse space continues to exceed supply.
The move builds on a strong performance from the first phase of the redevelopment, completed in early 2024, in which older industrial buildings were refurbished into 6,843m² of modern warehouse space and fully let before completion to fast-moving consumer goods operator Albatross Foods.
The cost of the second phase redevelopment is expected to be about R135m, with construction set to commence in April and expected to be completed by November.
“The rapid take-up of phase 1 reinforced our confidence to proceed with the next stage of redevelopment. The positive outcome of the first phase validated the location and our investment thesis. Demand for high-quality industrial space in Montague Gardens remains exceptionally strong,” said Growthpoint head of asset management in logistics and industrial Jason Reeves.
In the second phase the group will deliver two modern A-grade warehouse units totalling 10,674m² while focusing on functionality over form — with improved yard layouts, higher stacking capacity and food-grade flooring tailored to the operational demands of logistics and distribution users.
Parts of the site had become increasingly inefficient for modern industrial use, with outdated layouts and constrained yard space. That opened a window for Growthpoint to act as tenant movements created favourable timing to push ahead with its optimisation strategy at the site in Montague Gardens, the group said.
The property is located opposite Indlovu Logistics Park, another asset in the group’s portfolio.
Beyond the Western Cape, Growthpoint is also deepening its exposure in KwaZulu-Natal where it recently broke ground on Tecoma Park in Cornubia Industrial and Business Estate, a 36,830m² multitenanted development in a fast-growing logistics hub.
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