Inospace’s year of strategic growth: building smarter, scaling faster, and shaping the future of industrial real estate

As we look back on the past year, it’s clear that Inospace has entered a new phase of intelligent, data-led growth. After several years of building strong foundations, we entered 2024 ready for meaningful expansion across our Cape Town and Johannesburg networks. The year that followed was deliberate and focused. We strengthened our operational and financial systems, refined our portfolio, and prepared the business for its next major phase of growth.

In a commercial and industrial property market that continues to shift, our focus remained the same: build smarter before scaling bigger. Although growth has always been part of our DNA, 2024 required a different pace. We slowed acquisitions, deepened our understanding of our data, sharpened our processes, and ensured that every Rand and every hour invested delivered stronger returns for our clients, our shareholders, and the business.

This disciplined approach meant we entered 2025 with clarity, alignment and momentum.

Laying the foundation: strengthening our core

We started the year with two milestone acquisitions. The first was The Exchange, a landmark building in Cape Town’s CBD next to the International Convention Centre. Shortly after, we secured another well-located building in Salt River through auction. These purchases signalled that we were entering a high-growth phase and highlighted the need for the right structures to support it.

Throughout 2024, our teams focused heavily on improving our operational and finance functions. By analysing years of performance data across our multi-let industrial portfolio, we refined how we manage, price and maintain our spaces. This work has made Inospace more efficient, responsive and scalable. By early 2025, we were aligned and ready to execute on the strategy we had set.

Activating growth in 2025: turning strategy into action

With the groundwork in place, 2025 became a year of activation. A major focus has been transforming The Exchange into a modern hub for storage, retail and workspace. The building sits in one of the most active real estate nodes on the continent, supported by strong rental growth and a surge of new small-format residential developments in the surrounding area.

At the same time, we completed the sectionalisation of a long-held building in Montague Gardens. Improved occupancy, stronger rental profiles and focused planning turned it into an attractive opportunity for both owner-occupiers and investors. Demand exceeded expectations, reflecting continued strength in the Western Cape industrial market.

Strategic acquisitions in Cape Town: growing where it matters most

Cape Town remained a priority for us. We finalised the acquisition of a nearly 5 000m² building in Paarden Eiland, one of the region’s fastest-growing industrial nodes. With our strong presence and operating model in the area, we saw immediate potential for a new storage and micro-warehouse facility.

After lengthy negotiations, we also completed the acquisition of a vacant building in Goodwood. It offers significant redevelopment potential and will be integrated into our wider Cape Town network.

Alongside our core portfolio, our trading division delivered a strong year. We sourced, acquired, improved and sold two assets (one in Epping and one in Jet Park) within the same year. These transactions show our ability to balance long-term portfolio building with targeted, short-term opportunities.

Reaffirming our commitment to Johannesburg

While Cape Town drew national attention, Johannesburg remains the economic centre of South Africa and a critical region for Inospace. We continue to see meaningful opportunity in multi-let industrial and micro-warehouse spaces. This year, we acquired a new property in Wynberg, which fits well with our operating model. With a growing team and a strong presence in the city, we expect solid value uplift in the years ahead.

Organic growth: unlocking value within our portfolio

A significant portion of our progress came from improving what we already own. We increased rentals across key buildings, reduced vacancies, strengthened tenant retention, and split larger spaces into micro-warehouse and micro-storage units to meet rising demand. We completed our flagship micro-warehouse development in Sandton, upgraded assets in Edenvale, and began a major redevelopment at Powder Mill in Ndabeni. These projects show the strength of our model: identify underused areas, reconfigure them, and turn them into productive, income-generating units.

Sustainability and innovation

We continued to invest in long-term resilience. Over the past year we launched three large solar projects, installed three potable-water boreholes, and improved energy efficiency and water security across several sites. These initiatives reduce operational risk for clients and strengthen the sustainability of our portfolio.

Looking ahead

As we move into the year ahead, the message is simple: we delivered on our 2025 growth strategy, and the next phase is underway. With stronger operations, a growing presence in both Cape Town and Johannesburg, and a team that consistently executes at a high standard, Inospace is well positioned for continued expansion.

We move forward with purpose and confidence, ready to support growing businesses, unlock new opportunities, and continue shaping the future of industrial real estate in South Africa.