Durban's new warehousing precinct to help industrial land shortage
Category Industrial land
Durban’s continuing shortage of flat land suitable for commercial and industrial use is preventing the development of major warehousing in the region.
Companies requiring access to the harbour, as well as close proximity to national road networks add another layer of complexity to the situation. But the development of the Clairwood Racecourse will bring viable opportunities that meet this need.
The last quarter of 2012 saw the sale of Clairwood Racecourse from Golden Circle to Capital Property Fund, who in turn will lease the 77-hectare Durban Racecourse to Golden Circle for a period of two years. During this time, Greyville Racecourse, also owned by Golden Circle, will be upgraded and operations will be moved from Clairwood to the newly renovated premises.
The Clairwood sale last year was negotiated by Galetti Commercial & Industrial, and achieved a selling price of R430m. John Jack, Director for Galetti, comments, “The greater Durban area is of huge strategic importance to many large corporates in South Africa, and Capital Property Fund foresaw an opportunity here.”
Capital Property Fund has ambitious plans in store for the site. Looking to capitalise on the new multibillion Rand Durban dig-out port that will be located near to Clairwood on the old Durban International Airport site, they plan to develop a mixed-use logistics park consisting of warehouse and distribution facilities.
According to John Jack, “ We believe the 5km proximity within the new Durban port will prove attractive to the likes of freight and logistics companies looking to base themselves within a convenient distance of port facilities.”
The Clairwood community is also set to benefit from these plans, with Capital Property Fund expecting the project to create jobs and improve security in the area. Special attention will be placed on attractive architecture, as well as constructing an environmentally sustainable development. This will ensure that no noise or harmful emissions will be emitted from the new logistics park.
Once completed the park will boast as much as 300,000sqm under roof space and potentially even more with clever planning. The logistics park will provide a modern offering at competitive rentals and Galetti anticipates a major focus in the wider area ahead, with more the more prudent investors acquiring property within the same precinct.
Author: SA Commercial Prop News