Redefine secures prime Cape Town industrial land

Redefine Properties will develop industrial assets in Brackenfell.

Redefine Properties will develop industrial assets in Brackenfell, having gained ownership of one of the few tracts of land available for commercial use in the northern suburbs of Cape Town.

Redefine said yesterday it was the majority shareholder of the Brackengate 2 precinct.

Redefine would partner with local property developer Van der Merwe Venter (VDMV) to unlock the business opportunity identified within the Brackengate node.

Redefine would spend R108m for a 50.1% stake in the land, and VDMV would spend R108m, putting the total purchase consideration at R216m. The acquisition yields 425,000m² of developable bulk across three land parcels called Main, Stikland and Triangle.

The precinct, situated along the R300 freeway near the Brackenfell business district and linking to the Golden Triangle, has multiple access points. These include the N1 and N2 national routes, as well as the R101, R102, and Bottelary Road, all of which are secondary routes linking the major industrial and business districts around the northern suburbs of the Cape Town metropolitan area.

Brackengate 2’s land area, including roads and public open spaces, covers 90.66ha.

The project will be rolled out over a five-year period.

“We will start rolling the bulk infrastructure within the coming months and are entertaining enquiries for big box retail and logistics operations,” Redefine national asset manager of industrial sites Johann Nell said.

Logistics properties are currently popular in SA’s listed property space.

Analysts are waiting for Redefine to release more information about the Brackengate 2 development.

“The big box logistic sector continues to show attractive fundamentals driven largely by the changing retail landscape, and has benefited from significant investor interest, both in SA and globally,” Investec Asset Management portfolio manager Peter Clark said.

“Brackengate represents a good opportunity for Redefine, however, it should be noted this is still early stage. It will take a long time for the development to be fully completed, and development projects should be tenant-led,” Mr Clark said.