JSE-listed real estate investment trust (Reit) Growthpoint Properties has completed Phase 2 of the Arterial Industrial Estate, in Cape Town, reaching another milestone in its ongoing strategy to improve the quality of its directly held South African portfolio.

Driving its domestic portfolio enhancement, Growthpoint says it has strategically grown its logistics and industrial assets from 15% to 20% of the total South African portfolio value in recent years.

At the same time, the Reit notes that it has increased its exposure to modern logistics warehouses, the backbone of Growthpoint’s long-term value creation approach in this sector.

Modern logistics properties represent about half of the portfolio's gross lettable area. The company says it is also focusing its investment in better-performing, higher-demand areas of the country, specifically in the Western Cape and KwaZulu-Natal.

Growthpoint notes that a notable stride in this direction is the recent completion of Phase 2 of the Arterial Industrial Estate, adding quality capacity to the sought-after location.

With 21 831 m² of additional lettable space, Phase 2 has added six more warehouse units, ranging from 2 945 m² to 5 713 m², catering to a variety of business needs.

Together, both phases of the development represent a nearly R400-million investment from Growthpoint.

The company says the estate is experiencing strong demand, with two of the six units in Phase 2 already “snapped up”, supported by strong tenant interest, highlighting the need for high-quality industrial space in the region.

Phase 1 of Arterial Industrial Estate, spanning 19 741 m² is fully let to top names in national and international industry.

"The completion of Arterial Industrial Estate's Phase 2, and the good demand and take-up of available space it is experiencing, underscores the value we provide to businesses seeking efficient and sustainable industrial real estate solutions," says Growthpoint Western Cape regional head Wouter de Vos.

"Growthpoint is reporting strong performance in its logistics and industrial portfolio, fuelled by high occupancy rates and a strategic focus on modern facilities. Our well-let logistics and industrial portfolio demonstrates the increasing demand for modern, strategically located facilities,” says Growthpoint asset management, logistics and industrial property head Errol Taylor.

Arterial Industrial Estate is strategically positioned in Blackheath, a popular industrial hub in Cape Town, offering “exceptional” access to key transportation routes, including the R300, N1 and N2 highways, as well as Cape Town International Airport and the region's seaports.

Growth point says this prime location allows businesses to efficiently connect with both local and global markets.

The estate offers 24-hour security, flexible warehouse and office space, and a commitment to sustainability, including solar panels and a four-star Green Star certification from the Green Building Council of South Africa.

“This project reflects a continued and deliberate pivot toward better-performing, future-fit logistics assets and aligns with Growthpoint’s strategy of targeted investment and divestment, and development,” adds Taylor.