South Africa’s biggest landlord launches R392 million coastal development

Growthpoint Properties has broken ground on the R392 million Tecoma Park logistics development in KwaZulu-Natal, delivering 36,830 m² of warehousing space to meet rising demand in the coastal province’s key logistics hub.

JSE-listed Growthpoint Properties has officially commenced construction of its new multi-tenanted logistics park, Tecoma Park, in the rapidly emerging Cornubia Town economic hub in KwaZulu-Natal.

Growthpoint said the major R392 million development reinforces its continued investment in the logistics sector and reflects its disciplined capital allocation strategy.

It added that the project also reflects its clear preference for investment in the country’s stronger-performing coastal metros.

Notably, Growthpoint’s KwaZulu-Natal property portfolio is one of the largest and most diversified in the region.

Valued at R8.6 billion, it spans 560,000 m² of gross lettable area across more than 50 logistics, office, retail and healthcare assets.

“KwaZulu-Natal remains a core investment region for Growthpoint,” said Growthpoint Properties’ SA CEO, Estienne de Klerk.

“Our portfolio in the province consistently delivers exceptionally high occupancy levels, underpinned by sustained tenant demand across all sectors.”

This, De Klerk explained, gives Growthpoint the confidence to keep deploying capital in the province in line with its strategy.

Growthpoint’s domestic strategy is to increase portfolio weighting towards sectors and regions expected to deliver stronger long-term growth.

For sectors, it is specifically targeting logistics and retail property, and, for regions, it is focusing on its portfolios in key coastal metros, including KwaZulu-Natal and the Western Cape.

Including Tecoma Park, Growthpoint is currently investing around R1.5 billion in various developments and value-add redevelopment projects in the region, which are already underway or will commence soon.

This includes the R800 million purpose-built student accommodation development adjacent to the Howard College Campus of the University of KwaZulu-Natal in Berea.

“KwaZulu-Natal continues to demonstrate robust property fundamentals, particularly in key nodes offering strong connectivity and long-term growth potential,” said Growthpoint’s KwaZulu-Natal regional head, Greg Worst.

“Demand is driven by the ports, airport and logistics infrastructure, as well as growing consumer markets. From a regional perspective, we continue to see strong tenant demand for well-located, modern space.”

Tapping into South Africa’s in-demand property segment

Scheduled for completion in 2027, Tecoma Park will deliver premium A-grade logistics space strategically positioned within Cornubia Town.

It is located next to Cornubia Mall and just 12 km from King Shaka International Airport and 21 km from Durban Harbour.

The location offers direct access to major arterial routes, surrounding industrial precincts and key transport infrastructure, enabling fast and reliable movement of goods across the region and beyond.

Growthpoint’s head of asset management for logistics and industrial property, Jason Reeves, explained that the project is tapping into a highly desirable segment in the property market.

“The Tecoma Park development responds directly to escalating demand for modern logistics and warehousing facilities in KwaZulu-Natal, amid a well-documented shortage of suitably sized, high-specification units,” Reeves said.

“It is set to become a flagship industrial asset in our portfolio, aligned with our strategy of investing in modern, well-located logistics properties.”

The development will comprise eight flexible units ranging in size from 2,790 m² to 5,264 m², with the ability to combine adjoining units to create larger units up to 10,000 m².

This responds to tenant needs and to accommodate a broad range of logistics and warehousing users.

Featuring contemporary industrial architecture suited to high-performance operations, the units will offer generous internal heights and efficient loading configurations with both dock‑leveller and on‑grade access.

Each unit will include an integrated office component, modern façade treatments, cantilevered canopies over loading doors and high-quality internal finishes.

The park’s masterplan ensures clear separation between industrial operations, vehicle movement and office activity, maximising efficiency and on-site safety.

Dedicated truck circulation routes, optimised yard depths and well-planned staff and visitor access points will support smooth traffic flow across the precinct.

As with all Growthpoint’s developments, sustainability is embedded in the design. Solar PV will be installed across the roofs of the units and elegantly screened.

Green features include energy-efficient lighting systems, hot-water heat pumps and building forms that maximise natural light to reduce energy consumption. The park will be set within landscaped green spaces.

Tecoma Park will provide modern, efficient and environmentally responsible facilities tailored to the evolving needs of next-generation occupiers.

“This development reflects our confidence in logistics assets that are well-located, future-ready and demand-led, and our conviction in KwaZulu-Natal’s property fundamentals,” De Klerk said.