The 40,000m? development in Isando, near the OR Tambo Airport, would be a coup for Redefine, and should increase its industrial property assets to about 21% of its total portfolio from the present 16%, said Redefine CEO Brian Azizollahoff.

"It will be the Gauteng regional distribution hub for Pepkor," said Azizollahoff. "It's a blue-chip tenant on a long lease. A lease of 10 years or longer is considered a very long lease. It's a good deal for Redefine."

The 62,400m? Isando site was acquired this year. Azizollahoff said Redefine could develop the property up to 42,500m?.

Redefine and Pepkor said they expected the hub to be fully operational by next November.

Pepkor will occupy the entire premises on a 10-year lease, with two five-year renewal options. The structure would include 2,000m? of offices, canteens and other facilities in addition to a big warehousing area.

Pepkor property director Marius Barkhuysen said: "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."

At the moment there are no vacancies at all in Redefine's industrial property portfolio, illustrating demand for industrial space.

Azizollahoff said there was a shortage of large industrial premises, "particularly in the prime nodes".

Pepkor and Redefine have established relationships with a number of Pepkor's retail brands occupying premises in several of Redefine's shopping centre properties across the country.

Pepkor also leases 15,000m? in warehouse space from Redefine in two nearby properties. The group will be relocating operations there into the new industrial premises in Isando.

Azizollahoff said Redefine would look at more industrial acquisitions or developments if the "right opportunities present themselves".