Industrial property investments to be driven by online retail
Property companies want to buy logistics and warehousing assets so they can benefit from online retail
Fund managers expect local and foreign landlords to increasingly invest in warehousing and distribution centres over the next few years so that they can position themselves for the growth of online retail. Offshore based industrial property funds may also potentially look at listing in SA where investors are wanting more choice when it comes to listed property investments. Only about 2% of retail sales in SA occur online, according to research by Arthur Goldstuck of World Wide Worx, but this will increase exponentially as infrastructure improves and data costs drop. “I would think most large diversified real estate investment trusts (Reits) would want to have some exposure to industrial property, particularly on the higher quality logistics and warehousing front,” said Ahmed Motara, an analyst at Stanlib. He said listed property CEOs were likely to be cautious before spending capital in a slow economy. However new acquisitions and developments would most likely be made with a long-t...
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