select
|

Helderberg Basin ticks all the boxes for commercial property investment

There is strong demand for commercial, industrial and retail space in the Helderberg Basin, according to Detlef Struck, commercial property specialist for Lew Geffen Sotheby’s International Realty in Somerset West and Stellenbosch.


Units at Quantum Park 1, Firgrove, consisting of warehouses with office sections, are achieving rentals of R64/m2 as demand for commercial, industrial and retail space grows in the Helderberg Basin.

“All three sectors are very active between Somerset West and the airport, largely due to the fact that about 7 500 new homes are being built at the Sitari, Vergenoegd, Aan de Wijnlanden, and Acorns developments. Most of the new residents in these developments will inevitably want to work and do their shopping in the area,” says Stuck.

To cater for the demand, the Firgrove business park is being developed close to Firgrove Station and just five minutes from Waterstone Village shopping centre and the Somerset West CBD in a node that has been declared a transit orientated development zone, which enjoys some relaxation of building regulations.

The development is north of the N2, with high visibility from N2, R102 and M9 freeways and nearby public transport facilities include the train station and a bus stop, and the MyCiti bus route which in in the planning stage and will be operational by early 2019.

The 55 ha development will consist of a shopping strip with retail outlets and a business park with upmarket units of about 2 000 m2 to 4 000 m2 in buildings of up to four storeys, all of which must comply with architectural guidelines.

The business park units will be suitable for a wide range of enterprises, and will be ideal for businesses that need easy access to the airport, the Helderberg Basin and Cape Town. Although no leases have yet been signed, Stuck says the developer is in negotiations with Benbel, Food Lovers Market, and Talisman.

“The developer is in the process of levelling ground and construction is due to start early next year with the first buildings scheduled for completion in 2019.

“There is another area with a connection to the station where the developer would like to build a retail shopping centre with offices as well as a residential estate with units in blocks like in Barcelona, Spain or Nooitgedacht Village in Stellenbosch.”

Stuck says that because of the restrictions on development in the adjacent Stellenbosch area there is no commercial development in the south of Stellenbosch – the closest new complex is north of Stellenbosch on the corner of Bottelary Road (R304).

“There is another commercial business park south of the N2 towards Macassar, where almost all the units have been let or sold and the next closest business parks to the west are in Saxenburg and Blackheath, which are some distance from Firgrove.”

Chris Cilliers, chief executive and principal for Lew Geffen Sotheby’s International Realty in the Winelands, says: “Somerset West is fast becoming known as a commercial hotspot and a prime location from which to do business and to buy commercial space as an investment.

“Having grown exponentially during the last decade, commercially it now comprises different pockets, with the strongest demand for new office space and light industrial units between Somerset West and the airport.

“With commercial property prices that are still about 20% cheaper than in Cape Town, the boom time in the commercial capital of the Helderberg Basin looks set to continue into the foreseeable future.”

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, believes there are few better property investments in South Africa than Winelands commercial space.

“Yields on commercial property are traditionally better than residential property where rental increases usually drop when the economy slumps. Commercial leases, on the other hand, usually keep pace with inflation.”

Geffen says another key factor underpinning the commercial growth in the region is the fact that people continue to seek a better quality lifestyle away from the city, but still want to be close to all amenities.

“The Helderberg Basin ticks all the main boxes,” says Geffen.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK