JHI Properties leases R60 Million two large Industrial Property in Gauteng

Ground preparation (in foreground) for the new All Joy Foods Sasko warehouse in the new Twenty One industrial estate development in Olifantsfontein, with the 34 000sqm Consol Glass warehousing and distribution centre in the background.

Evidence of the ongoing demand for large industrial space is a 10 year lease for a site of 13 550sqm in the new ‘Twenty One’ industrial estate in Olifantsfontein, Gauteng, in a transaction secured by JHI Properties on behalf of All Joy Foods.

The value of the lease is approximately R60 million.

“The buildings being built for All Joy Foods will comprise a factory/warehouse of 7070sm with a food processing and distribution facility, plus management and administration offices and spacious yard,” says investment broker, David Reid at JHI.

“Working with All Joy over the past year, several opportunities were considered before the new development, Twenty One, was selected. This site is ideal because it is within easy reach of the company’s main customers which include distribution centres for Shoprite in Louwlardia, Pick n Pay in Longmeadow, SPAR in Jet Park and All Joy’s major supplier in Isando. With highway visibility it is particularly well positioned for easy access to the Albertina Sisulu Highway (R21) and the N1. Construction is already underway with All Joy’s occupation scheduled for 15 December this year (2012),” says Reid.

Located only 18km from OR Tambo International Airport, Twenty One is situated at the Olifantsfontein interchange which provides immediate access to the popular industrial areas of Olifansfontein and Clayville, as well as the northern reaches of Thembisa townships, one of the largest formal residential areas on the outskirts of Johannesburg.

JHI Properties also concluded a five year lease for 11 500sqm of warehousing space for Pioneer Foods Sasko division, which has taken up an industrial property formerly utilised by Amalgamated Beverage Industries in Benrose. “Well situated just a kilometre from the Benrose offramp from the M2, the premises will be utilised for distribution purposes.

The trend towards the demand for new industrial space from 3 000 up to 20 000sqm continues. The demand is predominantly for logistical uses such as warehousing, packing and distribution. This tendency is especially evident on the East Rand, with the significant opening up of new development nodes to the north of OR Tambo and the ever popular Jet Park, Meadowdale, Longmeadow, Linbro Park stretch – where there is an increasing demand due to good proximity to major routes such as the R21, R24, N12 and N3.