Industrial Portfolio

overview

Ultra-diverse, our Industrial portfolio features older, yet functional properties, modern facilities and new developments, spread across South Africa’s premier warehousing, manufacturing and distribution nodes. With a value of R7 billion and a GLA of 2.2 million m², the Industrial sector made up 14% (value) and 41% (GLA) of Growthpoint’s property portfolio (including Growthpoint Properties Australia and the V&A Waterfront), as at 31 December 2011. The portfolio comprises 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 and we are well positioned to provide expansion to existing and new clients.

The table below gives a cross sectional view of the Industrial portfolio as at 31 December 2011

Industrial Sub ClassNumber of propertiesGLA m²Value RmValue /m² (excl. bulk)
Warehousing104958,6322,4292,529
Industrial Parks10374,2941,1913,023
Retail Warehousing13111,2474244
Motor-related Outlets1460,74540867
Mini Units20167,4325823,478
Midi Units880,6782713,141
Maxi Units114,466453,124
Low Grade Industrial22180,2984012,168
High-Tech Industrial1293,5034795,057
High grade Industrial22172,4737354,264
Vacant land4196
Total Industrial2302,213,7747,1613,104
Growthpoint’s industrial portfolio is located in the major industrial zones in Johannesburg, Pretoria, Cape Town, Durban and Port Elizabeth. The graphs below depict the portfolio’s geographical spread both in terms of value and gross lettable area.
The lease expiry profile below indicates an optimal spread of both renewal and new deal opportunities.
 
The weighted average lease length of the industrial portfolio is 3.3 years. Given the historically low rentals in Growthpoint’s industrial portfolio, the vacancies and the relatively short weighted average lease length provide significant upside for Growthpoint.