Inospace acquires former bank branch
Serviced business park owner and operator, Inospace, is pleased to announce that it has acquired a period building from FirstRand Bank.
Serviced businesspark owner and operator, Inospace, is pleased to announce that it has acquired a period building from FirstRand Bank that was closed in 2019 as part of their nationwide shut down of branches.
The country’s big four traditional banks – First National Bank, Absa, Nedbank and Standard Bank – have together shut 695 branches since their respective peaks in the earlier part of this decade. In 2019 First National Bank close several outlets amid the growing adoption of digital banking channels. FNB came to the decision after it launched a review of branch related functions. The bank found that, during the expansion of its digital banking platform, there was a duplication of services and “unrealised efficiencies in our points of presence”.
Inospace will incorporate the property into its adjoining 25,000 square metre Island Works Business Park that it acquired from Ascension Properties in September 2017. Island works was extensively refurbished in 2019 and several well-known brands including Veldskoen Shoes, Comparisure, OrderIn and Giant Bicycles call it home.
The former bank branch will be incorporated into the greater business park offering which offers a combination of industrial, office and storage spaces together with meeting rooms, a restaurant and extensive business facilities.
The property consists of a three-level freehold building providing warehouse-style offices, with a large communal double volume atrium. The building has a distinctive Edwardian facade and this will be retained.
The property has been leased by a group of companies including; ITC Business Administrators one of the pre-eminent providers of arrear debt management and collection services in South Africa; SA Business School who offer tailor-made solutions to businesses on a full array of available BBEE Skills Development; iContact a specialised BPO operation that offer highly tailored customer service and back office services and SSDA a full service debt collection company specialising in large Credit Grantors debtors’ books.
When asked why the move, Trent Lockstone, Chief Executive Officer of SA Business School advised, “we believe that innovation is what differentiates itself from its competitors. It is therefore great to be based in an Inospace building and be associated with such an innovative brand”.
The property is being acquired at a capital value of R5,000 per square metre and the transaction will be funded from existing facilities. The acquisition completes our purchase of the entire city block in Paarden Eiland that is bounded by four streets.
According to Clinton Cohen, Managing Director of iContact, “it is our belief that Paarden Eiland will become a contact centre hub based on its ideal location and transport system. We are proud to be one of the pioneers.”
Commenting on the announcement, Rael Levitt, Chief Executive Officer of Inospace, said: “This strategic purchase allows us to consolidate our presence in Paarden Eiland, which has become an increasingly attractive area for our clients. It provides an exciting and further opportunity for us to scale our offering in this vibrant and dynamic part of Cape Town as we continue to grow the business through selective acquisitions and delivery of our extensive refurbishment and redevelopment pipeline. This is a property we have tracked for some time and we are delighted to add it to our portfolio”.