South Africa is experiencing a relative boom in new warehousing space demand , notwithstanding the well documented macro challenges the country is facing . In fact , logistics , warehousing and light industrial property is going through a particularly exciting time right now , especially as all kinds of retailers continue to gear up their distribution networks driving new omnichannel strategies .
Atterbury is meeting this demand with two large-scale business parks under development in Cape Town – King Air Industrial and Richmond Park , and as a result , it recently won deals with renowned companies , including Takealot , Rubicon , WeBuyCars , The Courier Guy and Morgan Cargo .
“ Work on these large-scale developments begins long before turning the first sod , and getting them right requires vision and putting several nonnegotiable basics in place .”
One of our strategies at Atterbury is to undertake mega-developments , especially mixed-use precincts and major business parks . The sheer size of these developments mean they are rolled out over many years , but they are exceptionally agile to immediate market forces and demand .
1 . Secure the right location
Great locations for large-scale logistics , warehousing and light industrial development are often secured years before any construction development commences . For instance , King Air Industria , Cape Town , began construction in 2020 but the land was acquired in 2016 and the rights for this development were secured in 2018 . And , its roll-out could take the next five to eight years . In the case of Richmond Park , Atterbury won the tender to develop the site in 2008 , while the long-term lease over the land was only registered in 2015 . “ Choosing the best locations , on the best terms , in future high-demand growth areas takes more than spreadsheets and number crunching . Site identification and assembly requires the foresight and keen instinct that only comes from experience .”
2 . Work with the right team
Once you have the right site , a skilled , experienced team is the key to unlocking its potential . This includes the internal
SA Real Estate Investor Magazine APRIL 2022 69