The construction of a Logistics & Warehouse in Germiston, a small city also known as kwaDukathole in the East Rand region of Gauteng, South Africa, has commenced.
The facility, which is reportedly one of the most sought-after properties in the region, is being developed by Improvon, which owns approximately US$ 604M in warehouse and logistics assets in South Africa and other Sub-Saharan African nations such as Kenya and Zambia, at the Rand Airport commercial park.
Overview of the project
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Sitting on a total land area of 250 000 m2, the project is divided into five execution stages the first of which is slated to be finished in September this year. This will bring in 7 600m2 of under roof space that will eventually grow to 13 000 m2 of A-grade logistics and warehouse space.
Improvon CEO Stefano Contardo noted at the groundbreaking that Rand Airport’s strategic position makes the Logistics & Warehouse in Germiston unique in terms of logistics and freight, with direct arterial access to the N17, N3, and R21. Contardo stated that the company’s investment was bolstered by its optimistic forecast for the warehousing and logistics markets.
The cost and funding for the Germiston Logistics & Warehouse
The overall cost of the implementation of the project for the construction of the Logistics & Warehouse in Germiston is anticipated to be slightly over US$ 87M. Nedbank Property Partners, which is a part of the Nedbank Group, South Africa’s largest commercial property financier, has taken a 35% investment in the development, with Improvon controlling the remainder.
Despite South Africa’s gloomy economic prognosis, demand for premier warehouse and logistics assets remains strong, with logistics facilities continuing to be the country’s highest-performing commercial asset class.
