Industrial buyers are not spoilt for choice
By Carl Kleinhans Riverhorse Valley has gained overwhelming popularity since the completion of the Queen Nandi Interchange in 2002 when many industrial players questioned the viability of positioning themselves in this seemingly barren node along the N2 freeway. Fast forward to 2017 and we see the result of strong marketing and well supported town planning paving the way for a full house business park.
Riverhorse Valley has gained overwhelming popularity since the completion of the Queen Nandi Interchange in 2002 when many industrial players questioned the viability of positioning themselves in this seemingly barren node along the N2 freeway. Fast forward to 2017 and we see the result of strong marketing and well supported town planning paving the way for a full house business park.
The creation of the Riverhorse Business Park in such a short period supports the trend for multi-national companies to position themselves in areas where accessibility, exposure and variable operational costs are crucial. Many logistics, manufacturing and distribution companies find that this central position provides the most beneficial access to their customer base in KZN.
One fact however rings true in almost all business parks; when these Parks are established the uptake is slow and the cost of acquiring land is reasonable but the day arrives when there are suddenly no parcels of land available and you find a multitude of strong buyers waiting to buy into these parks.
Springfield Park and Umgeni Business Parks are situated a short distance from Riverhorse with equally convenient access to the N2 freeway especially since the completion of the Umgeni interchange in 2015. Springfield and Umgeni are long-standing industrial nodes where properties that are for sale are virtually non-existant. Both nodes also enjoy strong demand for tenancies especially in multi-unit complexes.
During an interview with Growthpoint’s Industrial Property Divisional Director Engelbert Binedell in 2015 he reiterated the rising demand for space in industrial areas such as Prospecton, Jacobs, Mobeni, Spingfield Park (Umgeni), as well as the Riverhorse and Briardene nodes. The key drivers according to Binedell are centralisation and consolidation of branches, modernisation of facilities such as higher warehousing for optimal stacking space. Binedell also highlighted the undersupply of logistic space in these prime areas.
We do concur with Growthpoint that the opportunity to acquire land is virtually non-existent especially larger tracks to accommodate national key players. Well that is until now.
In2assets, a leading KZN based property player, has been afforded the opportunity to market two incredible tracks of land for their 28 February auction in Durban. These are truly the last remaining large industrial land parcels anywhere along the N2 corridor between Riverhorse and Spingfield Park. The larger property is a 20 970m2 flat industrial property with good visibility from the N2 freeway. The property falls within the Umgeni Business Park which is adjacent to Springfield Park. This property is easily accessible from the N2 which makes this an optimal position for any logistics company.
The second tract of land is an industrial parcel located along the very high demand Queen Nandi Drive in Briardene Industrial. The property is 14 596m2 and is easily accessible from Queen Nandi Drive. This position will benefit a variety of trades.
Ask any industrial broker about land scarcity in the Durban south basin such as the Port, Prospecton, Mobeni and Jacobs. There is a magnitude of buyers lined up for land which they will never be able to acquire as simply said ‘there is none’. If we relate the scarcity experienced in the south basin to Riverhorse and Springfield, then it is safe to say that after 28 February 2017 buyers will regret not participating in the public auction, in a bid to grab the last two remaining industrial parcels.
If you are a serious national retailer, wholesaler, manufacturer, importer, logistics company, investor or developer then this opportunity should not pass you by. As they say; hindsight is the best vision.