LIBERTY INVESTS IN PRIME INDUSTRIAL PROPERTY IN RICHARDS BAY
Category Development
LIBERTY INVESTS IN PRIME INDUSTRIAL PROPERTY IN RICHARDS BAY
Liberty Group Ltd has announced the purchase of its first greenfields industrial property located close to Richards Bay, identified by local and provincial government as a high-potential development site.
Samuel Ogbu, CEO of Liberty Properties comments: “The development of John Ross Interchange (JRI) Business Park is an important step in the process of bringing greater diversity to our core portfolio by extending our reach into industrial property. The acquisition is strategically important for Liberty Properties, mostly because of its ability to facilitate sectoral and regional diversification. The 195,000m² site, to be purchased from Arctic Sun, is well positioned within the City of uMhlatuze, at the intersection of the N2 Highway (linking Durban and Pongola) and the John Ross Parkway (which connects Richards Bay and Empangeni)”.
Given the planned infrastructure spend of around R33bn in this area by Transnet over the next seven years, investment in this region is expected to increase significantly, and with this, demand for real estate and land. Liberty Properties intends to create an industrial and commercial mixed use development over thirty sites, with top structures that include warehousing and showrooms. Construction is expected to start in 2013 as soon as the infrastructural services are completed by Arctic Sun and subject to approval by the Competition Authorities. Over and above the planned infrastructure spend, this project is anticipated to make a significant contribution to job creation in northern KZN.
Ogbu says this prime acquisition gives the Liberty Property Portfolio much needed exposure to modern industrial buildings as well as better representation in KZN where the Group already has substantial investments in retail, offices and hotels in Pietermaritzburg and Umhlanga. “Our investment in JRI Business Park provides us with a significant opportunity to facilitate development in a high-potential developmental node. Equally important is the injection of new stock into a relatively mature portfolio and rental profile which over time will allow the fund to enhance returns on the overall portfolio.”
The primary market area that the Liberty development will serve is the greater uMhlathuze area which includes Richards Bay, Empangeni and surrounding towns such as KwaMbonambi and Mtunzini. The site comprises two parcels of land (north and south of John Ross Parkway, with the N2 running to the west) and enjoys easy access to multiple logistics facilities with a high visibility profile.
High growth rates and exceptional development opportunities characterize the uMhlatuze node which has a GDP of R3,7b and an average GDP growth rate of 4% per annum. uMhlathuze contributes 7.6% to the GDP of KwaZulu-Natal. Exports, timber and manufacturing drive the local economy, which features an Industrial Development Zone (RB-IDZ). Other companies which have made significant investments into this area include Foskor (fertilizer manufacturing), Richards Bay Minerals (dune mining), Billiton (Hillside and Bayside Aluminium Smelters), Mondi (forestry, paper and pulp manufacturing) and Bell (yellow-metal manufacturing), plus the Richards Bay Coal Terminal (the world’s largest coal export facility by storage and through-put). In addition, the node features a number of smaller manufacturers which are export-led.
Author: Liberty Properties
