Partnerships are key to weathering the economic storm precipitated by COVID-19, especially in the logistics real estate sector.
Partnerships are key to weathering the economic storm precipitated by COVID-19, especially in the logistics real estate sector. And with the strong shift to e-commerce, the demand for storage and supply infrastructure will only increase, creating opportunities for business parks and warehouse units to thrive, says Rael Levitt, CEO of business park operator Inospace.
As such, Inospace has signed an agreement to operate two assets of property group Fortress REIT Limited - Electron Exchange near OR Tambo Airport, and Wadeville Works. The joint venture, which may seek to acquire and manage further assets in South Africa, is a sign of positive growth at a challenging time for the real estate sector.
Levitt says:“Inospace is delighted to be partnering with one of the country’s largest real estate investment trusts, and the fact that Inospace is now managing both Electron Exchange and Wadeville Works is testament to the professionalism and expertise that has been developed within our company over the last three years in particular. The formation of this relationship represents an important opportunity for both parties, and it will give Inospace key advantages in an increasingly competitive market and through the real estate cycle.”
Neville Bear, Inospace regional director, says the operation of Electron is part of Inospace’s strategy to grow its business park footprint near South Africa’s major airports. Electron Exchange joins Jet Works, which was recently sold to MMI but which is still managed as an Inospace Park, as two premier business parks in the key OR Tambo node. Measuring 8,500 square metres , Electron has now been fully refurbished and repositioned from a single-use industrial block to a multi-let, multi-use business park, providing a combination of office, warehouse, industrial and storage space.
Says Jodi Sher, marketing director at Inospace: “We believe in the power of a meaningful and consistent brand that delivers more than dark grey and red buildings with a logo, but rather speaks to our space-as-a-service-strategy of building the brand through focusing on client solutions. Our business parks offer physical location and convenience, combined with great service and a host of facilities and benefits. We don’t have tenants, we have clients. And our parks are run by professional on-site management teams who focus not only managing the parks efficiently, but also on building strong client relationships.”
Similar to the hospitality sector, Inospace has segmented its business park offering into tiers to ensure that clients enjoy a consistent brand experience. Newly refurbished, Electron Exchange is one of Inospace’s flagship parks, with a full suite of services and business benefits, as well as a quirky Electron theme running through the design.
“Our business hubs are the heart of our parks, starting with a warm welcome at reception, the fully-equipped meeting rooms, pause areas and modern kitchen. At Electron you can also enjoythe upmarket on-site café as well the outside roof deck, ping pong table and the Electron Charging Station when you need some time out. These communal areas are where our clients get to connect and network, and where you truly experience that sense of community,” says Levitt.