Improvon celebrates 30 years of excellence in warehouse and logistics development across sub-saharan Africa

 Improvon, a specialist property investment company focusing on the warehousing and logistics sector across sub-Saharan Africa is celebrating 30 years in business.
 
Founded in 1995 with the advent of democracy, the company has since inception successfully developed and leased modern warehouse facilities of more than 1,300,000m², becoming one of the region’s largest unlisted players, with a portfolio that has far exceeded expectations. 
 
The company’s journey began in January 1995 when its founders, the four Da Costa brothers, developed their first warehouse building in Meadowdale, Germiston. By the end of that year, they had completed five warehouses, all successfully leased. 
 
Improvon’s founders saw an opportunity in the market for modern warehousing solutions, recognising the shortage of such facilities in South Africa as the country entered a new, democratic era. They anticipated that a growing urban population and a consumer-driven economy would significantly increase the demand for modern warehouses and logistics facilities.
 
The four brothers, with backgrounds in construction, had been planning the transition into property investment through developments since the 1980s. By the time they officially founded Improvon, their vision was clear. They aimed to create long-term annuity income by building modern industrial facilities. The business model was simple: acquire well-located land and develop state-of-the-art warehouses. They also researched future trends in South Africa, attending a pivotal 1993 seminar by futurologist Clem Sunter, which solidified their strategy for navigating the country’s political and economic changes.
 
Improvon’s early success can be attributed to its founders’ deep understanding of property development and location selection. Instead of spreading itself thin, the company focused on key areas with strong demand, such as Meadowdale, Longmeadow and Linbro Park, all close to major highways and O.R. Tambo International Airport, east of Sandton. This approach has been a cornerstone of the company’s strategy and today, Improvon remains focused on high-demand nodes within Gauteng, including the Golden Triangle formed by the R21, N3 and R24 highways.
 
Over the years, Improvon expanded its portfolio, which now includes properties in the Western Cape, Mpumalanga, North West, Kenya and Zambia. The company has developed and leased more than 1.3 million square metres of logistics properties and holds over 600 000 square metres of strategically located land for future development.
 
Funding and growth
In the early stages, Improvon secured initial funding from the Natal Building Society (NBS), which later merged with Nedbank. Over the years, the company forged strong relationships with banks, financial institutions and joint venture partners, which helped it scale its operations. A notable milestone came in 2000, when Improvon sold a portfolio of 14 buildings to a property fund preparing to list on the Johannesburg Stock Exchange. This transaction marked the company’s first major deal and provided much-needed capital for expansion.
 
In 2017, Improvon entered its first international venture with private equity partner Actis and in the following year acquired a stake in York Commercial Park in Lusaka, Zambia. Soon thereafter, they acquired land to develop phase 1 of Nairobi Gate Industrial Park, set on 100 acres on the Eastern Bypass of Nairobi in Kenya, marking a significant step outside South Africa.
 
Challenges
Improvon faced several significant challenges throughout its growth. One of the most pressing was the Rand crisis in 1998 when interest rates in South Africa spiked to 25.5% amid financial uncertainty, capital outflows and exchange rate depreciation. 
 
Despite the tough economic conditions, the high-quality nature of Improvon’s portfolio along with strong tenant relationships ensured that none of its tenants defaulted over this trying time. In response to the market downturn, the company slowed its development pace until conditions improved.
 
During the same period, a property investor tried to entice Improvon to “dump” their portfolio at a significant discount to avoid “massive” losses – fortunately, the brothers had faith in the market rebounding and were rewarded for their steely resolve when not long after, a property fund seeking to list on the JSE approached Improvon to acquire the portfolio of 14 properties, and the deal went through successfully.
 
Another challenge occurred in 2001, when one of Improvon’s buildings remained vacant for several months due to negative market sentiment. Yet, the company remained committed to its business model, maintaining its financial obligations and continuing to develop high-quality properties.
 
Lessons learnt
Improvon’s success is rooted in its founders’ passion, hard work and commitment to quality. The founders started with limited funds but focused on developing quality properties with integrity and reliability, principles that still guide the company today. The founders’ ability to pivot when faced with challenges, adapt to changing market conditions and make strategic decisions has been crucial to the company’s growth.
 
The company’s lessons learned over the years are clear: real estate development requires long-term vision, trust in partnerships and the ability to weather difficult times. Improvon has thrived by maintaining its focus on quality, leveraging relationships with likeminded individuals and organisations and expanding strategically across sub-Saharan Africa.
 
Improvon’s vision remains steadfast: to continue growing organically, deepen its relationships with strategic partners and remain a reliable player in Africa’s logistics and warehousing sector.