Growthpoint’s logistics portfolio bolstered by completion of Arterial Industrial Estate, Cape Town

Growthpoint Properties (JSE: GRT) has achieved another milestone in its ongoing strategy to enhance the quality of its directly held South African portfolio with the completion of Phase 2 of the Arterial Industrial Estate in Cape Town.

Driving its domestic portfolio enhancement, Growthpoint has strategically increased its logistics and industrial assets from 15% to 20% of the total SA portfolio value in recent years.

At the same time, South Africa’s leading REIT (real estate investment trust) has increased its exposure to modern logistics warehouses, which are the backbone of Growthpoint’s long-term value creation strategy in this sector. Modern logistics properties now represent approximately half of the portfolio’s gross lettable area. It is also focusing its investments in higher-performing, higher-demand areas of the country, specifically in the Western Cape and KwaZulu-Natal.

A notable stride in this direction is the recent completion of Phase 2 of the Arterial Industrial Estate in Cape Town, adding quality capacity to the sought-after location. With 21,831 m² of additional lettable space, Phase 2 has introduced six more warehouse units, ranging from 2,945 square meters to 5,713 square meters, catering to a variety of business needs. Together, both phases of the development represent a nearly R400 million investment from Growthpoint.

The estate is experiencing strong demand, with two of the six units in Phase 2 already snapped up, supported by robust tenant interest, highlighting the need for high-quality industrial space in the region. Phase 1 of the Arterial Industrial Estate, spanning 19,741 square meters, is fully let to top names in national and international industry.

The completion of Arterial Industrial Estate’s Phase 2, along with the strong demand and uptake of available space, underscores the value we provide to businesses seeking efficient and sustainable industrial real estate solutions,” says Wouter de Vos, Growthpoint’s Regional Head: Western Cape.

Growthpoint is reporting strong performance in its logistics and industrial portfolio, fueled by high occupancy rates and a strategic focus on modern facilities. Our well-leased logistics and industrial portfolio demonstrates the increasing demand for modern, strategically located facilities,” says Errol Taylor, Growthpoint’s Head of Asset Management, Logistics and Industrial Property.

Arterial Industrial Estate is strategically located in Blackheath, a popular industrial hub in Cape Town, providing exceptional access to key transportation routes, including the R300, N1, and N2 highways, as well as Cape Town International Airport and the region’s seaports. This prime location enables businesses to effectively connect with both local and global markets.

The estate provides 24-hour security, adaptable warehouse and office space, and a commitment to sustainability, featuring solar panels and a four-star Green Star certification from the Green Building Council of South Africa.

“This project reflects a continued and deliberate pivot toward better-performing, future-fit logistics assets and aligns with Growthpoint’s strategy of targeted investment, divestment, and development,” adds Taylor.