Published: 2004/02/18

Engineering News

KwaZulu-Natal’s single biggest industrial property holder, Ithala Development Finance Corporation’s Properties, is set to increase its Durban property portfolio by more than 10%, prompted by growing demand for factory premises in the city surrounds.

Executive at Ithala Wellington Ngcobo, said: "Durban’s industrial sector is encouragingly buoyant, while rental levels have increased by more than 10% year-on-year. The present economic surge has resulted in tremendous interest in additional industrial premises in Greater Durban, demand we believe will be sustained and which follows significant growth in manufacturing volumes recorded during the 2002/2003 financial year".

Ithala has emerged as a major Provincial role-player in the manufacturing sector and has an industrial property portfolio totalling 1-million m2 throughout KwaZulu-Natal, of which 113 000 m2 - housing 195 clients - is situated in the Durban area.

The organization promotes and facilitates private sector investment in KwaZulu-Natal as a means of contributing directly to essential job creation and the economic growth and development of the province.

"The Durban element of our portfolio is virtually fully let and has prompted us to look to assessing further property development opportunities in an industrial area just to the north of the city, as well as in the hugely popular Mount Edgecombe area. The feasibility of these opportunities could result in the development of at least a further 13 000 m2 of production space, adding more than 10% to our Durban industrial property portfolio and bringing on stream much needed and specifically tailored factory unit facilities for entrepreneurs here," said Ngcobo.

The organisation has assisted in the establishment of almost 900 medium and large business ventures throughout KwaZulu-Natal in the past five years alone, facilitating the creation of some 22 400 new employment opportunities in that time. In addition, the development finance corporation has reduced its original industrial property holding by 13,8% by selling off properties in its decentralised industrial estates to private investors.

Ngcobo said: "By encouraging both new and existing tenants, as well as other investors, to purchase industrial premises from Ithala, we are able to unlock capital for further development projects and programmes in KwaZulu-Natal. This also assists entrepreneurs to themselves become owners of productive capital".