property spotlight
Growthpoint Industrial Estate
Located at 1 Bell Street, Meadowdale, this 50 000m² industrial property offers customisation of mini units to suit tenants’ requirements, from 200m² to 10 000m². It is a conveniently located, sec
 
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Industrial Portfolio
overview
Growthpoint’s industrial portfolio is characterized by its diversity. Old, yet functional properties, ultra modern facilities and new developments are spread across South Africa’s premier warehousing, manufacturing and distribution nodes.
 
With a valuation of approximately R6.68 billion and gross lettable area, (GLA) of approx.2.3 million sq.m the industrial sector makes up 23% and 52% of Growthpoint’s property portfolio by value and by gross lettable area respectively.
 
The industrial portfolio is divisible into a number of categories; warehousing, industrial parks, retail warehousing, motor related outlets, mini units, midi units, maxi units, low grade industrial, high-tech and high-grade industrial. Prime industrial zoned land has also been secured in the past and as such the portfolio is well positioned to provide expansion requirements to existing and new clients.
 
The table below gives a cross section of the industrial portfolio.
 
Recent Performance
The industrial sector has been the best performing sector over the last three years, but has been more severely affected by the economic recession. Manufacturing output is sharply down and a number of clients dependent on the motor or mining industry have been severely affected and, in some cases, been forced to close down.
 
Vacancies in existing properties increased from 2.1% to 3.7%, with new developments taking the total vacancy level
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The table below gives a cross sectional view of the Industrial portfolio as at 30 June 2009.
Industrial Sub ClassNumber of propertiesGLA m²Value RmValue /m²(excl. bulk)
Warehousing1171,102,4612,4732,229
Industrial Parks8306,1309702,433
Retail Warehousing15119,4304305,583
Motor-related Outlets1666,6653915,689
Mini Units21178,4325803,248
Midi Units778,3492393,014
Maxi Units242,4271122,628
Low Grade Industrial26223,8124311,790
High-Tech Industrial1293,5033793,984
High grade Industrial21164,8946694,054
Vacant land111
Total Industrial2462,376,1036,6832,684
 

The geographical analysis of the retail portfolio by value and GLA is depicted below.

As the lease expiry profile as at 30 June 2009 shows, close to 50% of existing leases expired after 3years. The expiry profile gives Growthpoint the security of long term tenancy while also providing the opportunity to benefit from the short term expires.