Prime Durban port property up for grabs

207 Maydon Road in Durban – a 28 000-sqm industrial warehousing space – will go on auction on June 25 this year and bidding is expected to exceed current record prices. “This is a once-in-alifetime opportunity for logistics operators as finding a decent-sized property with a 15-year lease option near the port of Durban can be equated to striking gold,” said Rainer Stenzhorn, marketing and sales support for property disposal company, In2Assets. He added that the owner, Transnet Holdings, was offering an option to extend the lease once the current lease period had expired. Stenzhorn told FTW that while the company was still in the early stages of arranging the auction, the property was already generating international and national interest from importers and port handling companies. “This is one of the biggest industrial properties in KwaZulu Natal (KZN) and is currently only 5% occupied,” he said, adding that commercial property within the harbour precinct was selling at around R2 500 to R3 000 per square metre, which could lead to an earning potential for the leaseholder of R70 million or more. Growth in Durban’s industrial rentals has been “heating up”, according to property analyst, Rode & Associates, noting that that in recent months this city has been showing the strongest growth amongst the major industrial regions. “During the fourth quarter of 2013, prime industrial rentals in Durban were up by an impressive yearly rate of 9%. This can be compared with rentals on the East Rand which showed growth of only 5%. In the Central Witwatersrand and the Cape Peninsula rental growth of 2% was recorded, while in Port Elizabeth there was no growth,” according to the latest Rode Review. Stenzhorn said that the Maydon Road property offered good manoeuvring space for large vehicles and a large, single-storey space. “The shortage of suitable warehousing facilities near the port has forced companies to move to the outskirts of Durban. A space like this will guarantee the highest possible price,” he commented. INSERT & CAPTION Maydon Road property offers good manoeuvring space for large vehicles. – Rainer Stenzhom