Growthpoint completes 18-year Industrial estate vision

Growthpoint Properties is completing its 23-hectare industrial estate in Meadowdale, Germiston, with a new R24/N17-linked logistics facility for DPD Laser, highlighting the growing importance of e-commerce, modern distribution infrastructure and long-term tenant partnerships.

• Major milestone: Growthpoint's 23-hectare Meadowdale estate reaches its final development phase after 18 years, delivering approximately 85,000m² of industrial space.
• E-commerce expansion: A new 6,518m² purpose-built logistics facility will support DPD Laser's growing parcel distribution operations from July 2027.
• Long-term investment: The development secures a seven-year lease while strengthening Growthpoint's established logistics and industrial property portfolio.

Growthpoint's 18-year industrial development reaches its final phase

South Africa's growing demand for modern logistics and distribution infrastructure is driving another significant industrial property investment, as Growthpoint Properties (JSE: GRT) moves towards completing its 23-hectare Growthpoint Industrial Estate in Meadowdale, Germiston.

The listed property group's latest development is a 6,518m² purpose-built logistics facility for DPD Laser Express Logistics, an existing tenant expanding its operations to accommodate increasing parcel volumes associated with e-commerce.

The project occupies the estate's final vacant development stand, bringing an 18-year development programme, which began in 2008, to its concluding phase.

Once completed, Growthpoint Industrial Estate will comprise approximately 85,000m² of gross lettable area, accommodating a diversified mix of logistics and industrial businesses.

The latest development highlights an important trend in South Africa's commercial property market: demand for well-located, operationally efficient industrial facilities that can adapt to changing tenant requirements.

1. An 18-year investment in a strategic logistics location

Growthpoint Industrial Estate has evolved into an established logistics and industrial precinct within one of Gauteng's important distribution corridors.

Located in Meadowdale, Germiston, the estate provides convenient access to the R24 and N17 highways, supporting regional freight movement and connectivity to surrounding industrial and commercial markets.

Growthpoint Industrial Estate at a glance:

• 23 hectares: Total industrial estate footprint.
• 85,000m²: Approximate gross lettable area upon completion.
• 18 years: Development period beginning in 2008.
• 36 tenants: Businesses currently operating within the estate.
• 6,518m²: Final development for DPD Laser.
• Seven years: Lease term secured for the new facility.

The tenant mix includes established businesses such as Nebula Logistics Africa, Avon Justine, DPD Laser and Skinchem.

According to Jason Reeves, Head of Asset Management: Logistics and Industrial at Growthpoint Properties, completing the final development stand represents an important milestone in the estate's evolution.

“The completion of Growthpoint Industrial Estate marks the culmination of a long-term vision that has evolved into a mature and fully developed logistics node in line with our strategy,” says Reeves.
“It symbolises our ongoing commitment to meeting the needs of our logistics tenants in well-located nodes.”

For Growthpoint, the estate demonstrates how strategically positioned industrial assets can support long-term tenant relationships while adapting to changing market demand.

2. E-commerce growth drives DPD Laser's expansion

The latest development is being driven by the operational expansion of DPD Laser, which already occupies premises within Growthpoint Industrial Estate.

As e-commerce activity increases, parcel distribution companies require greater capacity, efficient vehicle access and buildings designed to handle high volumes of deliveries. DPD Laser's existing premises can no longer accommodate its growing operational requirements.

Rather than relocating to an entirely new industrial node, the company will expand into a purpose-built facility directly opposite its current operation.

Development milestones:

• June 2026: Construction commenced.
• June 2027: Scheduled construction completion.
• 1 July 2027: Planned occupation by DPD Laser.
• Seven-year lease: Long-term occupancy commitment.

Andrew Van Der Velde, CEO of DPD South Africa, says the expansion will provide additional capacity while allowing the company to retain the advantages of its existing location.

“As e-commerce volumes and our requirements have grown, we needed additional capacity designed around the fast and efficient movement of parcels,” says Van Der Velde.

“The new facility allows us to expand while remaining close to our existing operation, with a cross-dock configuration that is well suited to the way our business operates.”

The development also illustrates the importance of tenant retention in industrial property investment.

By accommodating the expansion of an existing occupier, Growthpoint can strengthen its long-term relationship with DPD Laser while adding a new income-producing asset to its portfolio.

3. Purpose-built logistics designed for efficiency

The new facility has been designed specifically around DPD Laser's parcel distribution requirements.

Unlike conventional warehouses primarily intended for long-term storage, a cross-dock logistics facility supports the rapid movement of goods between incoming and outgoing vehicles, reducing handling and storage time.

The building will incorporate warehouse and office accommodation, supported by extensive loading and vehicle access infrastructure.

Key development specifications:

• 6,518m²: Total purpose-built logistics facility.
• 10 dock-height doors: Supporting efficient loading and unloading.
• 26 on-grade doors: Providing access for courier and distribution vehicles.
• 11.5m eaves height: Supporting operational flexibility.
• Natural daylight: Polycarbonate sheeting incorporated throughout the warehouse.
• Energy-efficient lighting: LED systems designed to reduce electricity consumption.
• Water resilience: Three 10,000-litre buffer tanks for domestic water use.
• Solar-ready design: Roof infrastructure allowing for future solar installation.

According to Leon Labuschagne, Head of Development: Logistics and Industrial at Growthpoint Properties, the building has been designed to meet both immediate operational requirements and longer-term business needs.

“The starting point was a clear understanding of how DPD Laser needs the facility to work,” says Labuschagne.

“The cross-dock configuration, extensive access through dock-height and on-grade doors and increased building height all respond directly to its logistics operation.”

He adds that flexibility and futureproofing have been incorporated into the design to support changing operational requirements.

4. Why location and flexibility matter for industrial property

For logistics operators, location directly influences transport efficiency, distribution costs and delivery times.

Industrial properties with convenient highway access, suitable vehicle circulation and modern loading infrastructure are particularly important for businesses managing time-sensitive distribution networks.

Growthpoint Industrial Estate combines these advantages with an established operating environment.

Four factors support its investment appeal:

• Strategic connectivity: Access to major Gauteng transport routes.
• Tenant retention: The ability to accommodate expanding businesses within the same precinct.
• Purpose-built infrastructure: Facilities designed around specific operational requirements.
• Long-term income visibility: Lease commitments from established industrial occupiers.

The DPD Laser project demonstrates how an industrial landlord can create additional value by understanding a tenant's expansion plans and delivering the infrastructure required to support growth.

Reeves says the development reflects Growthpoint's approach to maintaining long-term relationships with its occupiers.

“Our aim is to understand where our tenants are going and provide property solutions to enable that,” he explains.

REI PERSPECTIVE: Industrial property growth is increasingly tenant-led

For South African property investors, Growthpoint's Meadowdale development highlights the changing nature of industrial real estate investment.

While location remains fundamental, the ability to deliver specialised facilities that improve a tenant's operations is becoming increasingly important.

Three investment lessons stand out:

1. Follow structural demand. E-commerce, distribution efficiency and supply-chain requirements are influencing demand for modern industrial property.
2. Invest in adaptable buildings. Flexible layouts, suitable loading infrastructure and future-ready services can strengthen a property's long-term relevance.
3. Retain quality tenants. Supporting the expansion of established occupiers can reduce relocation risk and provide opportunities for sustainable rental income growth.

The development also demonstrates the value of long-term planning. An industrial estate developed over nearly two decades can evolve alongside the businesses operating within it, rather than relying exclusively on new tenants to generate growth.

For listed property investors, the key considerations remain development costs, lease quality, tenant covenant strength and the returns generated on invested capital.

The bottom line: A mature estate positioned for the future

Growthpoint's final development at Meadowdale represents more than the completion of an 18-year industrial property project.

It illustrates how well-located logistics estates can continue generating investment opportunities as existing tenants expand and their operational requirements evolve.

With DPD Laser scheduled to occupy its new facility in July 2027, Growthpoint is bringing the development programme to a close while strengthening the estate's position as an established Gauteng logistics destination.

For investors and developers, the message is clear. The future of industrial property lies not simply in building more warehouse space, but in delivering strategically located, efficient and adaptable facilities that help businesses grow.

Source: Growthpoint Properties, with commentary from Jason Reeves, Leon Labuschagne and Andrew Van Der Velde, CEO of DPD South Africa.