Last-mile logistics and storage operator Inospace has acquired Voortrekker Xchange, a 7,143m² commercial property strategically located along Cape Town’s N7 corridor, from Fairvest Ltd for R65m.
The property occupies a prominent, high-visibility corner at the intersection of Voortrekker Road and Jakes Gerwel Drive (N7), one of Cape Town’s most important transport spines linking the N1, N2, the Port of Cape Town and the northern industrial belt. With 230 parking bays and excellent accessibility, the asset is well positioned to serve urban logistics, storage and fulfillment demand.
Originally developed as a hospital and later converted into a large corporate call centre, the building will now enter its third commercial life. Inospace will reposition the asset as a modern last-mile logistics and storage facility under its adaptive-reuse investment model, which focuses on transforming under-utilised urban properties into high-performing, multi-let logistics hubs.
The property will be rebranded Grand Works, joining Inospace’s growing portfolio of logistics, storage and workspace assets across Cape Town. The site is near the upcoming Grandwest Mall, a sprawling 22,000m² retail precinct adjacent to the iconic Grandwest Casino. This R600m project, spearheaded by developers Flanagan & Gerard in partnership with Sun International, promises to deliver a vibrant mix of retail outlets, restaurants, and health and fitness centres that cater to the diverse needs of the surrounding communities.
Market fundamentals support urban logistics demand
Cape Town remains one of South Africa’s most supply-constrained industrial and logistics markets. Industrial vacancy rates in the metro are near historic lows at approximately 3%, while demand for flexible, well-located warehouse and storage space continues to increase, driven by e-commerce growth, last-mile delivery requirements and limited availability of industrial land.
Across South Africa, industrial property has emerged as the top-performing commercial real estate sector, driven by e-commerce growth and the need for efficient supply chains. National industrial vacancy rates have hovered around 3.7% to 3.8%, reflecting tight market conditions that empower landlords and support rental increases.
Rental growth in Cape Town’s industrial sector has consistently outperformed national averages, reflecting strong tenant demand and rising replacement costs. Against this backdrop, Ino space’s portfolio currently operates at approximately 98% occupancy, underscoring the resilience of demand for urban storage and last-mile logistics space.
Rael Levitt, founder and chief executive officer at Inospace, said the acquisition aligns with both near-term market conditions and long-term structural trends.
“Cape Town is structurally undersupplied when it comes to well-located industrial, logistics and storage space. Vacancy rates remain exceptionally low, and demand continues to grow as businesses move closer to customers and supply chains become more fragmented,” said Levitt.
“This asset has the right fundamentals: visibility, access, scale and adaptability. It is exactly the type of property that lends itself to our adaptive-reuse model and long-term operating strategy.”
Executing on Inospace’s 2028 growth strategy
The acquisition forms part of Inospace’s 2028 strategy, which targets approximately R2bn in additional assets over the next three years, with a core focus on urban logistics, storage, and multi-let industrial properties in key metropolitan markets.
While Inospace is actively reviewing both single-asset and portfolio opportunities in Cape Town, the group emphasises disciplined capital allocation and value creation rather than growth for scale alone.
“We are actively executing on our 2028 strategy to acquire approximately R2bn of additional assets,” Levitt said. “While we are engaging in portfolio opportunities in Cape Town, our focus remains firmly on value-accretive transactions. We are highly selective and are targeting assets where we can actively improve income, reposition under-utilised space and leverage our operating platform to drive sustainable returns.”
Inospace completed several strategic acquisitions in 2025, growing its portfolio to over R3bn in assets under management across more than 52 sites nationwide, with Cape Town remaining a priority market.
“Cape Town is a key focus area for us, but pricing discipline is critical. We are not pursuing growth for its own sake. We are investing where we can create value through active management, adaptive reuse and operational intensity,” Levitt added.
The N7 corridor has emerged as one of Cape Town’s fastest-evolving logistics and service zones, benefiting from its proximity to the CBD, the port and the northern industrial belt. Continued public and private investment in infrastructure and surrounding mixed-use developments is reinforcing long-term demand for strategically located logistics and service-oriented real estate in the precinct.
“Urban logistics and storage is essential infrastructure,” said Levitt.“Our role is to revitalise under-performing assets and convert them into hard-working spaces that support modern supply chains, individuals and small businesses, while delivering consistent, long-term returns.”
