A gentleman in real estate once said to me: “If you can, always buy near the airport.” Airports are economic engines. They generate constant demand through the volume of human traffic, exports and imports. That is why airports become dynamic nodes.
The land surrounding an airport is sometimes referred to as an “aerotropolis”. It is used to describe the mixed-use development surrounding the airport, shaped by air travel. I’m talking about all the accessory real estate, such as hotels, logistics companies and retail, industrial and commercial properties that complement the airport ecosystem.
It’s also worth remembering that airports and their accessory real estate assets create thousands of jobs. In a country like ours, we could use all the economic stimulation and job creation we can get our hands on. When airports are developed, so is the real estate surrounding them.
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The “city” essentially grows around the new airport. With this, business demand follows, which usually translates to rising property values. Get in early and you might just hit a home run on your property investment.
Industrial warehouses, logistics and last-mile distribution have been booming — right through the pandemic and up to now, with the national vacancy rate floating below 5%. Newly built warehouses are popping up everywhere. When it comes to E-commerce, courier services, cold storage and freight companies, the real sweet spot is to be as close to the runway as possible.
It’s a resilient location for a resilient asset class. Growthpoint and Cape Winelands Airport have entered a partnership to redevelop the Cape Winelands Airport into a new grand aviation hub. Recently, WBHO Construction was announced as the project’s construction partner.
With South Africa’s largest listed property fund and a reputable construction firm such as WBHO involved, the project has strong backing. I always say that investment flows where confidence goes and all the above is sure to have a major impact and influence on the development of the surrounding area. This leads me to the opportunity in our smoking-hot industrial sector.
One upcoming industrial development that has caught my eye is Mountain View Business Precinct, scheduled to commence construction in the coming months. The industrial zoned, 50-hectare site (about the size of 50 rugby fields), midway between Durbanville and the new airport, will be home to the northern suburbs’ newest industrial expansion. I got in touch with the developer, Alwyn Kannemeyer, from Urban Town Property Development, to learn more about their project. The precinct will be a combination of opportunities, ranging from larger distribution centre sites (phases 1 and 2), through to light industrial micro-warehousing stands and turn-key solutions within a secure business park (phases 3 and 4).
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