Real estate investment company Improvon on February 16 broke ground on a new warehouse and logistics facility, the Dakota Precinct, at Rand Airport commercial park.
The development will be split into five phases with a combined land area of 250 000 m2, of which 130 000 m2 will be under roof.
Phase 1 of Dakota Precinct is expected to be completed in September, offering 7 600 m2 under roof, which will ultimately increase to 13 000 m2 of A-grade logistics and warehouse space.
The total project cost is estimated at R1.3-billion. Nedbank Property Partners is a key funder and shareholder of the project.
Speaking at the ground-breaking, Improvon CEO Stefano Contardo said the strategic location of Rand Airport makes it unique from a logistics and freight point of view, with easy arterial access to the N17, the N3 and the R21.
Contardo said this positions it as a gateway to Johannesburg and Tshwane from KwaZulu-Natal, and he indicated that most logistics and freight forwarding companies will use this node to break bulk and from there ship it to Tshwane, the East Rand and the rest of Johannesburg.
He noted that the company’s investment was underpinned by its positive outlook for the warehousing and logistics niches.
While these were constrained by the Covid-19 pandemic, they were not as hard hit as the rest of the property sector, and Improvon is bullish about further developments owing to factors such as growing e-commerce and decentralising of warehouses globally.
“In light of current supply chain constraints, Dakota Precinct offers an ideal strategic location for specialist manufacturers, assembly plants, processing factories, fast-moving consumer goods retailers and third-party logistics providers.
The differentiating characteristics of modern, A-grade facilities support the long-term sustainability of tenant businesses and lower the long-term occupation costs,” said Contardo.
He noted that the park would offer a premium environment for tenants and owners at a very reasonable price compared with other nodes in Johannesburg.
Dakota Precinct brings a ‘built-to-suit’ concept and flexible rental options to the Rand Airport commercial park and will be differentiated by convenient centralised access, efficient circulation for trucks, generous loading facilities, multiple roller shutter doors and good height facilitating volumetric capacity for pallet storage.
The development was also welcomed by a representative from the City of Ekurhuleni, and slated to be impactful from a socioeconomic perspective. Improvon is working closely with the city to ensure proper compliance on all matters, Contardo emphasised.
The development is expected to create many jobs, both during the construction phases, as well as in the operational phase.
Publication: Engineering News
