Growthpoint 7 Chain Avenue redevelopment: Phase 2 Launches in Cape Town

Growthpoint Properties has announced the launch of Phase 2 of its redevelopment at 7 Chain Avenue in Montague Gardens, Cape Town. This R135m investment builds on the success of Phase 1 and reinforces Growthpoint’s commitment to one of Cape Town’s most sought-after industrial hubs.

Phase 1 success sets the stage

Phase 1 of the redevelopment, completed in early 2024, transformed outdated buildings into 6 843m² of modern, subdivisible A-grade warehousing. Despite being developed on a speculative basis, both units were fully leased before completion to a leading FMCG operator in the Western Cape.

Jason Reeves, Growthpoint Properties’ Head of Asset Management: Logistics and Industrial, said that the rapid take-up of Phase 1 validated the company’s investment thesis and the location’s appeal. ‘Demand for high-quality industrial space in Montague Gardens remains exceptionally strong,’ he said.

What Phase 2 brings to the table

Phase 2 will deliver two state-of-the-art A-grade warehouse units with a combined gross lettable area of 10 674m². These units will feature:

• Improved yard layouts for better functionality
• Generous internal stacking heights
• Food-grade flooring to meet modern operational requirements

This redevelopment replaces 10 906m² of older C-grade warehousing, characterised by limited functionality and outdated layouts. The new design ensures the site is future-proofed for long-term performance and meets the needs of contemporary industrial occupiers.

Strategic location and market impact

Situated opposite Indlovu Logistics Park, another Growthpoint property, the 7 Chain Avenue redevelopment caters to mid-sized warehousing needs. This complements the broader industrial market in Montague Gardens, where vacancies remain low and demand for flexible logistics and distribution spaces is high.

Growthpoint’s investment aligns with its South African portfolio strategy, focusing on sectors and regions poised for better growth. The redevelopment enhances the site’s value and strengthens Growthpoint’s position in the industrial property market.

A commitment to growth

The investment in Phase 2 underscores Growthpoint’s dedication to optimising its portfolio and meeting market demands. With modern facilities and strategic planning, the 7 Chain Avenue redevelopment is set to become a benchmark for industrial spaces in Cape Town.