Inospace, a large owner of serviced logistics parks in South Africa, has acquired its 44th property in Montague Gardens, Cape Town
The company concluded agreement to acquire Creation Park, from a private property fund, for R119mn (approximately US$8.2mn). The industrial-zoned park is a modern 15,490 sq m multi-let property situated at the entrance to Century City.
Creation Park, soon to be renamed Creation Works, has 38 units and is let to 28 businesses. It will be repositioned, rebranded, refurbished, and fully serviced with additional value-added products. It will then be integrated into the company's network.
Inospace focuses on premium industrial and logistics distribution parks, let to small and mid-sized grade tenants on short-term flexible leases, in proven logistics nodes and built to institutional specifications.
Tenants include national operations such as Krost Shelving, PNA Stationary, Foodserv Solutions and Rebel Safety Gear.
Cape director for Inospace, Jacques Weber, commented that the acquisition has enhanced the group’s strong Cape Town urban portfolio. “Creation Park is a strong asset located in a key urban location 15 km from both central Cape Town and Tyger Valley. It is a perfect suburb for last-mile delivery and an area we have been trying to enter for two years.”
The transaction has been financed through a mix of cash and bank debt, provided by Grindrod Bank which is expanding its property finance business in the Western Cape.
“There is no doubt that short-term warehouse solutions are filling a much-needed gap in the market, especially when businesses are trying to deal with the immediate effects of the pandemic in China and other supply chain crises," concluded Weber. “Industrial and logistics property fundamentals are expected to stay robust in the next several years. Creation Works will offer a healthy mix of warehousing, storage, and last-mile logistics space to businesses.