Airport’s – a new investment opportunity?
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The rise of SA’s aerotropolis property market
24 Apr 2018
“Airports are increasingly becoming magnetic centres of economic and industrial activity, giving rise to what has been termed “aerotropolis” – a new form of airport-centric commercial development – which is essentially transforming airports in major cities into “airport cities”.
Greg Nafte, Co-Director of Nexus Property Group (NPG) says that the rising demand for property in industrial nodes surrounding busy airports is due to the increasing value being placed by investors on a property’s proximity to key infrastructure and transport nodes.
“We’re seeing an increased demand from both investors and owner-occupiers for industrial property, such as logistics, warehousing and distribution centres, in industrial nodes surrounding major airports as these areas are currently promising strong capital gains and are showing signs of major future expansion.”
Nafte says that NPG recently received instruction from one of their private clients to auction a multi-unit industrial property located in a tightly held and sought after industrial node of Airport Industria, located a mere 2.5km from Cape Town International Airport. “Cape Town, being one of the most visited cities on the African continent, holds the promise for significant growth and airport-centric economic activity – something we have already seen take off in recent years.
“Located at 36 Manhattan Road in Airport Industria, the property we are set to auction offers access from several main transport routes including Settlers Way, Borcherds Quary Road, Robert Sobukwe Road as well as the N1 and N2 highways, offering investors the opportunity to acquire a building in a thriving industrial area with strong earning potential.”
Furthermore, additional income is generated off an MTN cell tower with a secure lease in place, adds Nafte. “This lease is long-term, expiring on 31 May 2027 with a 10-year option, and promises Gross Annual income of R78 000 per annum (escalation as per CPI).”
The property is sectionalised into four units, covering 284m², 280m², 275m² and 272m² (vacant), respectively. “With an erf extent of 1 803m² and a gross lettable area of 1 111m², this property is 50% let and brings in an annual gross income of ±R304 000/annum. There are also two additional units available for rental. The total potential income of the property including the cellphone tower is approximately R680 000/annum),” says Nafte.”
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Something interesting from 2016………
Fancy buying an SA airport? Traveller24
“Cape Town – So what’s the going price of a South Africa airport?
Well, a private airport situated in the heart of the Barberton Valley in the most Southern part of what is known as South Africa’s Wild Frontier is on sale – at R6.8-million.
Although this property is well-known as the “Barberton Airport”, it is a privately-owned, registered airport with a 1km lighted gravel/grass runway. The current owners also insist, the purchase does not mean you have to keep operating it as an airport – since the airport has an onsite lodge included in its price-tag of R6.8m. Situated 15km from Barberton and 35 km from Nelspruit, off the R40, 1km on the Snymansbult road – it is also just an just an hour from the iconic Kruger National Park – this could be a unique opportunity for somebody wanting to break into the lucrative bush safari market.
In case you needed reminding, Kruger is the place where things like a pack of wild dogs will ferociously take out a kudu right in front of your eyes or Mamma elephants getting really protective of their calves.
The sale advert states, “Spectacular views of the Barberton Valley and mountains. Over 200 species of bird life. This property has lots of potential.” ”
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Follow the links to read the original articles.