Redhill Property - Innovation Spurs Growth
Alterations in land use and improvement to road infrastructure has transformed the property industry
By Nicola Jenvey
THE NORTHERN Stretch of the North Coast Road has seen significant changes in the past two decades. Not only was it the first portion of the infamously busy and congested road to benefit from double-lanes traffic lanes(and the subsequent ingenious counter-flow design at the N2 interchange that further reduced congestion ), but the construction of several innovate commercial and light industrial developments may be viewed as the acid test for broader initiatives in neighbouring RiverHorse valley.
Now, in the last few kilometres of the North Coast Road before the N2 Kwamashu interchange, there is a hive of commercial activity –including the Redhill Industrial Park built by Tongaat Hullett Developments; Constantia Park developed by Fortress Income Fund; and Glen Murray Industrial Park.
The property developments arm of the industrial food group Tongaat Hulett, Tongaat Hulett Developments, has been instrumental in expanding the commercial and industrial land use north of Durban.
Since the early 1990s, the group has converted its prime sugarcane land into commercial property space in a move that commercial property space in a move that has facilitated transformation of the real estate industry.
Through various partnerships, Tongaat Hulletts Developments has facilitated investments of more than R70 Billion into land and development north of Durban‘s traditional central business district, and the Redhill Industrial Park was one of the earlier examples of this shift. While small in scale compared to the multi –billion-rand developments that followed, the light industrial developments strip at the corner of Rinaldo and Old North Coast roads in a road aptly named Moreland Drive comprises of 26 hectares.
When first launched, Tongaat Hulett developments was called Moreland Developments.
Originally developed as brickworks land, the brownfield redevelopment has evolved as a quiet road-long enclave housing a myriad medium–sized businesses amid the welcoming cool of fever trees and the incomprehensible chatter of Indian mynas.
Constantia Park was developed by Fortress Income fund, a company that has emerged as a powerhouse in the South African property industry since listing on the Johannesburg Stock Exchange in 2009.
Focusing on the development of prime logistics warehousing, retail centres and strategic offshore investments, the fund has experienced positive growth annually.
Today the Cape Dutch-inspired Constantia Park architecture proudly dominates the left hand–road frontage as motorists approach the N2
The strip of connected pointed roofs, collectively accommodating 9 859m2 Of gross lettable area, houses another eclectic mix of tenants that bring diversity and innovation to the local economy. There are numerous properties to let or for sale within the various developments.
Portfolio Property principal Bradley Hancock says there is a mini warehouse on the market within Redhill Industrial Park that offers easy access to the N2 and N3 national freeways. The 240m2 section title unit is available for renting at R45/m2 with an option to purchase at R5 500/, m2 translating into R1.32 million.
Anvil commercial Property broker Matt Marvin has another 375m2 Redhill Industrial Park property on the books for R64/m2, while Vertical Spaces Properties can provide a tenant seeking light industrial unit with R300m2 property for a monthly rental of R70/m2.
Situated within a secure park, the unit can be used for light production, storage or distribution and has staff change rooms and ablutions as well as a mezzanine level housing a small office component.
Last month, Tyson Property Group advertised another 684m2 mini warehouse to rent in the area. Comprising a reception area, kitchenette and ablution facilities, the property came to the market for a total monthly rental of R85/m2.
Last, Knight Frank South Africa agent Markus Dickerson has a property in Glen Murray industrial Park waiting for either a buyer or a new tenant.
The 706m2 industrial warehousing has a monthly rental asking price of R65/m2.
BUSINESSES IN THE AREA
1. Emond Auto
Emond Auto has been operating as a General Motors Durban dealer since 1996, selling a wide range of quality new and used Chevrolet, Opel and Isuzu vehicles. Dealer Principal Dave Emond says since General Motors decision to withdraw from South Africa, the company will continue its business delivering service to customers.
2. LP Agencies
An established distributor of disposable food packaging, catering, disposables and sundries, cleaning and hygienic products, as well as foodstuffs, the company serves a range of hospitality, food –processing and food service customers. These include caterers, fast food outlets, coffee shops, restaurants, hotels, food manufacturers and pre-packers, event organisers, stadiums, supermarkets, canteens and office blocks, schools and churches.
3. Vibrant Direct
Founder and director Caroline Dassonville has expanded her national pamphlet distribution company into an entity beyond merely pamphlet distribution.
The company also offers robot/intersection flyer distribution; impact marketing using in-house promoters to hand out samples or pamphlets to motorists; commuter distributions; mobile billboards; poster campaigns and township marketing initiatives.
4. Saddler belts and Leathercraft
A family-owned business that garnered international acclaim, the company’s products are now also sold in Mauritius, Zimbabwe, Namibia, the Middle East and several European countries. The business reflects the merits of entrepreneurship and drive that are cornerstones of successful economies.
5. Tyreworx KZN
An importer and supplier of budget and premium industrial tyres, Tyreworx KZN serves customers throughout the province as well as nationally and across the borders.
Advantages to properties at top end of North Coast Road
The developments have easy access to the N2 and N3 national freeways, while the upgrading of the North Coast Road into a dual highway in both directions as well as the reconfiguring of the on and off ramps from the N2 have significantly eased traffic congestion in the area.
There are also numerous taxi routes throughout the neighbourhood.
Signage and street frontage
The development designs means tenants and owners have substantial street frontage and thus excellent road visibility for company signage and advertising.
Within a 5km radius from the area are numerous residential neighbourhoods catering for every income group and residential demand. This means there will be a willing supply of labour not incurring unduly extensive transport costs between work and home as well as properties attracting managerial and senior executive positions.
The benefit of a variety of businesses operating within a confined space is that the different businesses have the opportunity to feed off each other, generating turnover from their individuals abilities to draw customers to the area for different reasons.
Courtesy: Independent on Saturday