A New Breed Of Industrial Developments

Dakota precinct Ekurhuleni  

Warehousing and logistics property specialist Improvon is developing the Dakota Precinct on 250 000m² of prime, easily accessible land (130 000m² of it under roof) near Rand Airport in Ekurhuleni. The R1.3-billion development aims to capitalise on growth in the logistics sector while easing the flow of goods from the Port of Durban into Gauteng, says Mark Truscott, Improvon’s head of leasing and marketing.

“Most of South Africa’s freight comes in through Durban, from where it is road freighted to Gauteng, and this is the perfect entry point into the province,” says Truscott. “It makes sense for the large third-party logistics providers to have large warehouses where they can break the bulk cargo from large container trucks, segregate the products and distribute them around Johannesburg.”

Improvon’s strategy is to develop logistics nodes in areas with strong road links, targeting users operating in old warehouses with outdated technology and facilities. “We run the body corporate to ensure the roads don’t decay, the streetlights work and the gardens are nice.  We put an incredible amount of money into landscaping, in fact. Each warehouse or mini-precinct within the site is fenced and has security. It all creates a much safer and more pleasant working environment.”

Although the buildings do not have solar panels installed, given the varying power requirements of different customers Truscott says they are solar-ready, with reinforced roofs where panels can be installed at short notice. Rainwater is harvested from the large warehouse roofs, and all air conditioners are energy efficient.

Features such as this help reduce running costs, but efficiencies are also increased on an operational level, says Truscott. “We’re building large yards and fitting roller shutter doors so they can handle more trucks dispatching and receiving simultaneously. The warehouses will be very tall, which makes operating them cheaper because tenants pay per square metre, not cubic metre.”

He adds that the park is being built in accordance with health and safety requirements from international insurance companies. “It also helps companies that want to attract better staff members and actually hold on to them.”

The project has been delayed somewhat through council approvals, but the first 7 600m² will be finished in the first quarter of 2023. “We’re ready to start building for larger users right now,” adds Truscott.

Cargo compass equities jet park

International freight forwarder Cargo Compass has entrusted the development of its new 29 188m² warehouse and distribution facility to specialist industrial logistics REIT Equites. The development, which incorporates Cargo Compass’s head office, is on 48 751m² of land in Equites Jet Park, near the R21 highway.

One of Equites’ main goals in the Jet Park area is to bring it up to the same quality level as other large logistics nodes, says Jaun Knoesen, executive head of property development at Equites. “We see this as a node that will ultimately reinvest into the park and then grow through these sorts of spec developments.”

Knoesen says the facility is a newer style of development for the area. “It’s packed with technology, including photovoltaics supplying renewable energy, with Edge certification underwritten by the Green Building Council of South Africa. The building will have 30 per cent less water and energy consumption, and carbon emissions, compared to standard buildings.”

A client such as Cargo Compass requires logistics specifications at the forefront of what’s happening in the sector, adds Knoesen. “We’ve got premium dock levellers, massive 50-metre yards and 15.5-metre clear eaves with ample racking space. The building is acid compliant too. It’s not an industrial building in the historic sense; it’s a logistics building.”

The last point is important because Cargo Compass is relocating much of its operation to the park. Knoesen says Equites is seeing many companies consolidating various aspects of their business into one building, which has to be operationally efficient and aesthetically pleasing. “We’re looking at things such as pause areas, open-plan offices, canteens, restaurants and so on. You can’t just look at the building in isolation; you must consider the park environment too. We’ve introduced facilities such as showers, bicycle parking and a 5km running track as these are some of our blue-chip tenants’ requirements.”

Development started last year and finished in August, with Cargo Compass commencing trading at the beginning of September.