Inospace Expands Midrand Footprint With Fifth Park Bought From Business Rescue

Inospace Expands Midrand Footprint With Fifth Park Bought From Business Rescue. Inospace has acquired an N1-facing property in Midrand from business rescue, taking its portfolio in the node to five parks and its total lettable space in the area to about 50,000m².

The acquisition involves a property with 5,242m² of lettable space on a 15,197m² stand with direct frontage onto the N1. The building is almost fully let, while the purchase price has not been disclosed.

Rael Levitt, CEO of Inospace, said the acquisition reflects the company’s approach to operating in changing economic conditions. He described the business as counter-cyclical, saying companies often reassess their property requirements when economic conditions become more challenging.

Inospace owns and operates more than 52 last-mile logistics and storage parks in Cape Town and Johannesburg, with more than 2,100 SME tenants. Its properties offer smaller units on flexible terms, allowing businesses to expand, contract or relocate their operations.

The company said it is also seeing increased demand for outsourced warehousing. Its fulfilment and outsourced warehousing offering, launched in Johannesburg, has grown as businesses consider outsourcing storage and distribution instead of maintaining their own warehouse infrastructure, staff and systems.

Levitt said businesses were seeking more flexible cost structures, with outsourcing allowing certain fixed costs to become variable.

Inospace expects market conditions to cool and said it is factoring further interest rate increases into its planning. Levitt also pointed to higher fuel prices and uncertainty around the Johannesburg election scheduled for 4 November as factors businesses are watching.

The Midrand acquisition was completed through a business rescue sale. Levitt said such transactions can provide access to income-producing properties at pricing that reflects current market conditions.

The property’s location provides direct access to the N1, while Midrand’s position between Johannesburg and Pretoria places it along Gauteng’s logistics network.

Levitt said Inospace had acquired five new parks in Johannesburg over the past quarter. However, the company plans to remain selective about additional acquisitions while monitoring economic, political and global conditions.