…estate due to be officially launched in January 2014…
Property development and marketing company, Abacus DIVISIONS, has announced that it has completed the pre-launch phase of the Rietvlei Industrial Estate, in Irene, and would be officially going to market in January next year. The company said it had raised R50 million’s worth of commitments from potential buyers during the pre-launch phase.
This was confirmed by Abacus DIVISIONS’ MD, Org Geldenhuys, who said the company had planned to launch in 2013, but said a decision was made to extend the pre-launch phase “as marketing information started to flow in”.
“We wanted to go to the market with the right product offering. We are now sitting with verbal offers from potential buyers for 50% of the stands on offer,” he said. “What makes Rietvlei Industrial Estate different from other industrial estates is that majority of the stands on offer are less than one hectare.
“We have stands on offer starting at as little as 2000 square metres. Before the pre-launch we were planning to divide the estate into stands of one hectare or larger. But we found that potential buyers are looking for smaller stands to develop. This is one of the reasons we extended the pre-launch phase. We have been in the pre-launch phase for three months now,” said Geldenhuys.
R50 million in the coffers
He said the company had confirmed sales of R30 million with agreements and deposits – and another R20 million worth of verbal commitments, which the company hopes to sign up as soon as possible next year.
“Our market research shows that the market wants smaller stands. We started off by offering 10 one-hectare stands to the market and came back with only three bigger stands sold- and lots of enquiries for smaller stands.
“So we went back to the drawing board and returned with a new-look layout that cuts a number of bigger stands into sizes of between 2000 square metres and 3000 square metres .
“The demographics pointed to the fact that there is also clearly a strong resurgence of owner-occupiers who have been hesitant to invest any money due to market uncertainties caused by the great recession, which started in 2007. It seems they are now more positive and have decided it is now time to invest.
“What we also did, as an added value ,is include plans to build a filing station within the estate. This is because there was a queue of buyers looking to develop a filling station in the area. So we snapped up the idea,” said Geldenhuys.
Abacus DIVISIONS also removed the initial business II offering and made the estate a pure industrial estate – again based on perceived demand and research.
There are also options for public storage on certain sites within the estate.
With the official launch in January 2014, Geldenhuys said he expects proclamation and transfer of stands by the 3rd quarter of 2014.
R10 billion worth of development planned for greater Irene
The development of Rietvlei Industrial Estate is part and parcel of plans to develop approximately 500 000 square metres of bulk land in the greater Irene area. The first development to be approved was the boutique office park, Quattro Fontane, also marketed by Abacus DIVISIONS –which is now sold out.
Rietvlei Industrial Park is the second development to be approved by the developers, Irene Land Corporation. Parcels of land, which will be demarcated for different developments, will be released onto the market in a phased approach.