Last-mile logistics and storage operator Inospace has acquired the Voortrekker Xchange – a commercial property strategically located along Cape Town’s N7 corridor, from JSE-listed real estate investment trust Fairvest for R65-million.

Inospace will reposition the asset as a modern last-mile logistics and storage facility under its adaptive-reuse investment model, which focuses on transforming under-used urban properties into high-performing, multi-let logistics hubs.

The property will be rebranded to Grand Works and become part of the company's growing portfolio of logistics, storage and workspace assets across Cape Town.

With 230 parking bays and excellent accessibility, the 7 143 m² asset is well positioned to serve urban logistics, storage and fulfilment demand, Inospace says.

The property occupies a prominent, high-visibility corner at the intersection of Voortrekker road and Jakes Gerwel drive (N7), which is one of Cape Town’s most important transport spines linking the N1, N2, the Port of Cape Town and the northern industrial belt.

“Cape Town is structurally under-supplied when it comes to well-located industrial, logistics and storage space. Vacancy rates remain exceptionally low, and demand continues to grow as businesses move closer to customers and supply chains become more fragmented,” says Inospace founder and CEO Rael Levitt.

“This asset has the right fundamentals, namely visibility, access, scale and adaptability. It is exactly the type of property that lends itself to our adaptive-reuse model and long-term operating strategy.”

Cape Town remains one of South Africa’s most supply-constrained industrial and logistics markets.

Industrial vacancy rates in the metro are near historic lows of about 3%, while demand for flexible, well-located warehouse and storage space continues to increase, driven by e-commerce growth, last-mile delivery requirements and limited availability of industrial land.

Additionally, industrial property has emerged as the top-performing commercial real estate sector across South Africa, driven by e-commerce growth and the need for efficient supply chains. National industrial vacancy rates have hovered around 3.7% to 3.8%, reflecting tight market conditions that empower landlords and support rental increases.

Further, rental growth in Cape Town’s industrial sector has consistently outperformed national averages, reflecting strong tenant demand and rising replacement costs. Against this backdrop, Inospace’s portfolio currently operates at about 98% occupancy, which underscores the resilience of demand for urban storage and last-mile logistics space.

The acquisition aligns with both near-term market conditions and long-term structural trends, Levitt says.

Originally developed as a hospital and later converted into a large corporate call centre, the building will now enter its third commercial life.

Additionally, the property is near the R600-million Grandwest Mall, which is a 22 000 m² retail precinct being developed next to the Grandwest Casino.

This project, which is spearheaded by developers Flanagan & Gerard in partnership with entertainment and leisure company Sun International, can provide a mix of retail outlets, restaurants, and health and fitness centres that cater to the needs of the surrounding communities, Inospace says.

“Cape Town is a key focus area for us, but pricing discipline is critical. We are investing where we can create value through active management, adaptive reuse and operational intensity,” Levitt adds.

Further, the N7 corridor has emerged as one of Cape Town’s fastest-evolving logistics and service zones, benefiting from its proximity to the central business district, the port and the northern industrial belt.

Continued public and private investment in infrastructure and surrounding mixed-use developments is reinforcing long-term demand for strategically located logistics and service-oriented real estate in the precinct.

“Urban logistics and storage is essential infrastructure. Our role is to revitalise under-performing assets and convert them into hard-working spaces that support modern supply chains, individuals and small businesses, while delivering consistent, long-term returns,” says Levitt.

The acquisition forms part of Inospace’s 2028 strategy, which targets about R2-billion in additional assets over the next three years, with a core focus on urban logistics, storage and multi-let industrial properties in key metropolitan markets.