Property redevelopment on the rise in Isando

Siemans building at Growthpoint Properties Industrial property, Isando

Industrial nodes around the country are experiencing an increasing number of property redevelopments. This comes down to three factors namely location, infrastructure supply and the ability to deliver a modernised facility at less than new built rentals.

So notes Growthpoint Properties Limited Industrial Sector Divisional Director Engelbert Binedell. He believes that this trend will continue to grow, especially in high-demand industrial nodes.

Growthpoint Properties is the largest JSE-listed South African property company which owns property assets valued at over R46 billion.

Binedell explains that most industrial manufacturers work out of custom-built factories, making moving costly and an inconvenient disruption to their business. Also, most industrial areas are on pockets of zoned land, prized for transport access and electricity – both industry’s lifeblood - which limit the number locations for industrial areas.

“Industrial companies occasionally need to modernise factories and offices to stay abreast with new systems. They need to do so without incurring any down-time,” says Binedell. “Upgrading is the most cost-effective solution and delivers more affordable rentals, whilst future proofing the assets.”

Part of Siemens Ltd, Siemens I DT MD - which integrated the former Flender Power Transmission in South Africa - is a leading local supplier of all ranges of mechanical drives, including industrial gear units, gear motors, couplings and services in South Africa. Growthpoint Properties is refurbishing its facility in the heart of Isando which flanks the bustling OR Tambo International Airport.

The R6.2 million upgrade of the 9,400m² Siemens facility which includes warehouses, workshops and offices is set to be complete in May 2012, will create a refurbished property which meets Siemens international standards. Both internal and external works are being undertaken to upgrade the facility for both staff and visitors to the property ensuring, ensuring a modernised working environment. The property will also boast a wider entrance for a greater range of vehicle access through the freshly branded gateway.

“The four-month upgrade project is progressing while Siemens’ business is in full swing. We are working around their daily operations, which is essential to the project,” says Jason Reeves of the Growthpoint Properties Industrial Division. “It’s a complex task. Constant communication ensures the project’s success.”

This redevelopment has sealed a new five-year lease, with a further renewal option – continuing the long standing relationship between Siemens and Growthpoint Properties.

Growthpoint’s 130 000m² of industrial property in Isando is 98% let. Reeves says there is no surprise here. “This industrial area offers value for money and unmatched access to air, rail and road transport, and is a superb location for industry.”