The recent launch of a 25-hectare logistics development by JT Ross Property Group north of OR Tambo International Airport has drawn renewed focus on warehousing expansion at the Riverfields warehousing and mixed-use precinct on the R21.
Industrial property specialist Angelo Lorenzani has fine-tuned this focus, mentioning a couple of additional developments.
He said Fortress Real Estate Investment was bringing high-spec logistics space with features like 12m+ clearing heights, heavy-duty slabs, purpose-built large hardstands and designed circulation.
“This isn’t legacy warehousing,” he says, “it’s built for modern throughput and fleet efficiency.”
Also noteworthy is Growthpoint Properties “delivering quality, scalable units in key precinct pockets that speak directly to distribution, e-commerce and high-intensity users”.
Lorenzani adds: “Their developments are engineering space around how you work, not forcing operations to adapt.”
Last but not least, in the vast space on the “airport highway” is Equites Property Fund, “adding thoughtfully positioned industrial stock that caters to occupiers who need power, yard flow and connectivity to major routes”.
According to Lorenzani, the latter development offers “fundamentals that older stock simply doesn’t deliver”.
But what is it about Riverfields that has turned it into one of the country’s fastest logistical warehousing nodes?
Martin Bailey of Industrial Logistic Services, who is busy with various related developments in the area, says Riverfields’ appeal is simple – flat land that’s easy to develop, available at a fair price on a busy thoroughfare and with enabling support from the City of Ekurhuleni.
That the precinct is close to OR Tambo and densified warehousing immediately south of the airport is a bonus, and not the principal reason why logistical property developers are investing in Riverfields.
“Currently, in Gauteng there’s not much space available and the land that is available is unlike what you’ll find at Riverfields,” Bailey said.
He added that Waterfall in the Midrand-Centurion area was close, especially as far as location is concerned, situated as it is between Sandton and Pretoria.
“But it’s already built up. If you need a facility of 50 000 square metres and up, Riverfields has the space.”
Asked if there are environmental issues holding back further development, Bailey said ‘no’.
“If you find land that can be easily rezoned and a municipality that’s prepared to work with you, it’s a no-brainer. Ekurhuleni may have its own issues, but compared to Durban and Cape Town, warehousing development at Riverfields is growing because the council is cooperating.”
Whereas the West Rand also has potential, Bailey says it’s not just the hilly terrain that is tricky, but water, sewage and planning permission are also foreseeably problematic.
He added: “The involvement of companies like Equites at Riverfields is because they can get sizeable land at a reasonable price, to be developed at a reasonable cost, and get their plans approved fairly easily – which isn’t a simple thing to do in South Africa.
“There’s a lot of scope for similar warehousing development in Cape Town and Durban, but it’s ten times more difficult to proceed with warehousing development than is the case at Riverfields.”
