Property

South Africa’s biggest landlord is betting R578 million on the Western Cape

Kirsten Minnaar • 5 March 2026

Growthpoint Properties is expanding its Western Cape footprint with a R578 million logistics development in Montague Gardens, as part of its strategic plan to focus on high-demand industrial property in the region.

Growthpoint, South Africa’s largest JSE-listed real estate investment trust, recently announced that it was expanding its logistics and industrial property portfolio.

This is being done through the development of Indlovu Logistics Park on the site of a former PPC facility in Montague Gardens, Cape Town.

The group said the logistics park is being developed to meet growing demand for high-quality logistics and warehousing space in one of the city’s most established industrial precincts with modern maxi-units.

The R578 million development will comprise approximately 38,600 m² of gross lettable area across nine maxi-units, offering flexible, future-focused space for logistics, distribution and light industrial occupiers.

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

Construction of Indlovu Logistics Park will commence in May 2026, with occupancy expected in 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.

Growthpoint said the development of Indlovu Logistics Park is aligned with its South African property portfolio strategy to increase its weighting towards sectors and regions expected to deliver stronger long-term growth.

This strategy specifically targets logistics and retail properties, increasing the company’s exposure to the Western Cape.

Growthpoint’s Head of Asset Management for Logistics and Industrial Property, Jason Reeves, pointed out that the Indlovu development represents a rare opportunity.

“Opportunities to secure and repurpose well-located industrial land in the high-demand Montague Gardens area are increasingly scarce,” he said.

“This development allows us to deliver a high-quality logistics park in a proven node where tenant demand consistently outstrips supply.”

Location and design

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.

Growthpoint’s Western Cape Regional Head, Wouter de Vos, explained that 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,” De Vos explained.

“Indlovu Logistics Park will leverage these advantages while providing modern facilities that meet today’s occupier expectations.”

Reeves added 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,” he said.

At the same time, Reeves noted that there is also a strong demand for developments that incorporate sustainability features that help tenants manage operating costs and environmental impact.

Indlovu Logistics Park will comprise nine maxi-units, ranging from around 3,900 m² to 4,600 m², each combining warehouse and office components.

Units can be combined to create larger spaces, with the possibility of a single unit of up to 38,000 m² to meet tenant requirements.

The buildings will feature nine-metre eaves height, FM2 power-floated floors with a 50kPa load-bearing capacity.

It will also offer high-lift sectional dock doors, heavy-duty dock levellers, and a minimum yard depth of 32 metres to support efficient vehicle movement and goods handling.

Five-metre-deep canopies over all dock doors will also help provide weather-protected loading and offloading.

Sustainability

Sustainability also plays a key role in 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.

Energy-efficient LED high-bay lighting will also be installed throughout the park’s warehouses, along with water back-up tanks and water harvesting.

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, and 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.

All of these measures are aimed at 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,” Reeves said.

These range from logistics providers and distributors to manufacturers and wholesalers seeking efficient, well-located premises.