The companies today announced that construction would commence on the 62,400m2 Isando site, with earthworks in January 2007 and should be fully operational by November next year

Ideally situated in this primary industrial and warehousing nucleus near the OR Tambo International Airport, with easy access to both the N12 and R24 highways, Pepkor will occupy the entire premises on a 10-year lease, with two 5-year renewal options. The 40,000m2 structure will include 2,000m2 of offices, canteens and other facilities in addition to a substantial warehousing area.

“The new premises supplied by Redefine will facilitate the consolidation and expansion of our distribution operations allowing for more effective and efficient logistics, creating a dedicated distribution hub for Pep Stores,” said Marius Barkhuysen, Property Director of Pepkor.

Barkhuysen explains that Redefine scooped the project from several other contenders with location and price being the deciding factors. Redefine purchased the property during 2006.

Pepkor and Redefine have an established relationship, with a number of Pepkor’s retail brands occupying premises in several of Redefine’s shopping centre properties throughout the country. Pepkor also currently leases warehouse space of a total 15,000m2 from Redefine in two nearby properties, and will relocate these operations into the new premises.

“The Pepkor distribution hub will create a vibrant modern facility for this tenant, while at the same time growing the Redefine property portfolio with a superior quality industrial asset,” says Grant Abrahams, senior asset manager for Redefine Income Fund.

“It is rewarding to facilitate the growth and innovation of Pepkor’s property requirements for its distribution facility,” says Abrahams. The new Pepkor distribution hub has been designed to client specifications with aspects such as flooring, lighting, power, security and roadways all customised to tenant requirements.

Distinct receiving and dispatching areas will be served by some 24 docks and roadways will be designed to accommodate the turning circles of super-link long haul vehicles, as well as accommodating smaller delivery vehicles.

Pepkor will also be actively involved in the internal design of the facility ensuring the flows, stacking and racking meet its unique needs. The site also provides the possibility for future expansions.

Industrial property comprises 16% of Redefine’s property assets by revenue and portfolio is fully let.

Issued on behalf of Redefine Income Fund.