Equites to develop huge R90m warehouse for Famous Brands
LISTED specialist industrial property developer and landlord Equites Property Fund plans to develop a 7 000m² warehouse in Cape Town for Famous Brands at a cost of about R90 million.
Equites chief executive Andrea Taverna-Turisan said yesterday that construction of the warehouse just off the R300 on the Stellenbosch arterial was expected to start in the next two to three weeks after final signings.
Taverna-Turisan said Equites was developing the warehouse for Famous Brands on a 10-year lease.
He added that it was now a great time to develop in South Africa because construction companies were under massive pressure as a result of there being little work, which meant pricing levels were good.
Taverna-Turisan said they were engaging with their clients and trying to convince some of the bigger operators in South Africa to commit to designing and developing new facilities that would take them forward for the next 10 to 15 years.
“We are discussing with multiple potential tenants at the moment the development of some pretty substantial and meaningful campuses.
“We are quietly confident that there might be some positive activity coming through in the next year,” he said.
Taverna-Turisan added that there was a realisation among users that had multiple units all over the place that there was a more efficient way of working that involved fewer, bigger units.
He said this was a trend both in South Africa and the UK.
Taverna-Turisan said Equites development pipeline in South Africa, including projects it would be completing this month, was about R500 million while its £55m (R1.06 billion) development pipeline in the UK comprised three buildings that would be completed in about April next year.
Shares in Equites rose 1.62 percent on the JSE yesterday to close at R20.65.
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