Growthpoint Invests 578 Million Rand In New Cape Town Logistics Park

Source: Supplied. Artist's impression.

The R578m project signals confidence in the Western Cape’s logistics market as demand for modern, scalable warehousing accelerates.

Designed as a future-ready hub, the development will deliver about 38,600m² of gross lettable area across nine maxi-units tailored for distribution, logistics and light industrial users. Once completed, the park is expected to enhance supply in one of the city’s most established industrial nodes and support ongoing business expansion.

Growthpoint identified the significant redevelopment opportunity for this site after PPC decided to move operations to its Riebeek Valley facility.

Site transformation underway

Construction of Indlovu Logistics Park will commence in May 2026, and it will be ready for occupancy from before the third quarter of 2027.

The first step on site will be the demolition of the landmark PPC cement tower – a longstanding feature on the skyline, visible from as far as the N1 highway – paving the way for a new-generation logistics park.

The development of Indlovu Logistics Park is aligned with Growthpoint’s South African property portfolio strategy to increase its weighting towards sectors and regions expected to deliver better growth over the longer term, specifically targeting logistics and retail property and increased exposure to the Western Cape.

Jason Reeves, Growthpoint’s Head: Asset Management for Logistics and Industrial Property, says “Opportunities to secure and repurpose well-located industrial land in the high-demand Montague Gardens area are increasingly scarce. This development allows us to deliver a high-quality logistics park in a proven node where tenant demand consistently outstrips supply.”

Location drives demand

Montague Gardens remains one of Cape Town’s most sought-after industrial nodes, benefitting from its central location and excellent access to major arterial routes, including the N7, M5, M8, N1 and N2. From this position, occupiers can efficiently service the greater Cape Town metro, surrounding suburbs, port terminals and Cape Town International Airport, as well as regional and long-haul distribution routes.

Wouter de Vos, Growthpoint’s Regional Head: Western Cape, says location remains a decisive factor for tenants. “Montague Gardens offers an established industrial ecosystem, proximity to residential areas for workforce accessibility and excellent connectivity to the region’s primary transport routes. Indlovu Logistics Park will leverage these advantages while providing modern facilities that meet today’s occupier expectations.”

Reeves adds that the development has been designed with both current occupier requirements and long-term flexibility in mind. “We are seeing strong demand for facilities that combine generous yard areas, efficient loading, good power supply and quality office components, while also incorporating sustainability features that help tenants manage operating costs and environmental impact.”

Flexible industrial design

Indlovu Logistics Park will consist of nine maxi-units ranging from around 3,900m² to 4,600m², each combining warehouse and office components. Units can be combined to create larger spaces, with the possibility of a single unit of up to 38,000m² to meet tenant requirements.

The buildings will feature nine-metre eaves height, FM2 power-floated floors with a 50kPa load-bearing capacity, high-lift sectional dock doors, heavy-duty dock levellers and a minimum 32m yard depth to support efficient vehicle movement and goods handling. Five-metre-deep canopies over all dock doors will provide weather-protected loading and offloading.

Future-ready logistics

Sustainability forms a key part of the development approach. Rooftop solar PV is integrated into the development. Natural light will be introduced through translucent sheeting along vertical warehouse surfaces, reducing reliance on artificial lighting during daytime operations, while energy-efficient LED high-bay lighting will also be installed throughout the warehouses. Water back-up tanks and water harvesting are included at the park. All this enhances operational, environmental and cost resilience for tenants.

Each unit will be supplied with 250A three-phase power and optical-fibre connectivity, supporting power-intensive and technology-enabled operations. The warehouses will be fully sprinkler protected and compliant with ASIB 12th Edition standards, with backup pumps and tanks, as well as provision for in-rack sprinklers should tenants require them.

Security has been prioritised in the design of the park, with 24-hour precinct security, access control, CCTV, guardhouses at entrance and exit points, electric fencing and street lighting, creating a secure and professionally managed environment for occupiers and their staff.

“With its combination of strategic location and modern, efficient and scalable units, Indlovu Logistics Park will appeal to a broad range of operations, from logistics providers and distributors to manufacturers and wholesalers seeking efficient, well-located premises,” notes Reeves.