Inospace sells one-third of Creation Works units at launch in Montague Gardens

Strategically located adjacent to Century City and within immediate reach of the N1, N2 and major arterial routes, Creation Works combines accessibility with scale. The property offers generous yards, reticulation for trucks, copious parking and robust security. These features have helped make Montague Gardens the leader of Cape Town’s industrial property market.

Inospace has invested in a solar plant at the site, with solar energy to be shared by unit owners, reducing electricity costs and enhancing long-term asset value. The project’s launch coincides with growing demand for energy-efficient and cost-effective industrial spaces.

“Montague Gardens has always been a forerunner for Cape Town’s industrial property market,” said Rael Levitt, CEO of Inospace. “What we are seeing now is a clear structural shift: smaller, more affordable industrial units are outperforming the market. Creation Works taps directly into that trend, giving smaller businesses and private investors the chance to own a piece of one of South Africa’s most resilient industrial nodes.”

Market momentum in mini-industrial units

The launch reflects powerful tailwinds in the logistics and industrial sector. Over the past 12 months, capital values in the Montague Gardens area have risen 13 percent, fuelled by surging demand, constrained supply and a more supportive interest rate environment.

Rental rates in the node are approaching R100 per square metre, while replacement construction costs (excluding land) stand at R12,000 to R13,000 per square metre. This widening gap between cost and value has triggered demand for sectional-title ownership, with units enjoying 100 per cent occupancy and year-on-year rental growth of 15 percent.

Industrial property is increasingly seen as the backbone of the modern economy. Warehousing demand mirrors South Africa’s growing population and consumer needs, from furniture and food to e-commerce fulfilment. Much like residential property, industrial space has become a reflection of both demographic growth and shifting consumer behaviour.

Recycling capital and driving growth

For Inospace, the sales at Creation Works also highlight a key element of its business model: recycling capital. The company transforms under-utilised properties, disposes of mature assets, and reinvests in new opportunities where its operating platform can unlock further value.

“These sales transactions further progress our strategy of crystallising value from the sale of mature assets and recycling capital into acquisitions where we have identified an opportunity to add value through our platform,” Levitt explained.

Inospace has earmarked another R750m in acquisitions in the Western Cape over the next 12 months as part of this strategy. The company recently appointed Justin Stewart to head up the acquisitions and disposals division, strengthening its capacity to execute on growth opportunities.

Industrial as the new investment class

In addition to meeting SME demand, sectional-title industrial parks like Creation Works are attracting private investors searching for alternatives to residential buy-to-let.

“Smaller industrial units are becoming the new investment class,” Stewart commented. “They offer strong rental yields, growing capital values and tenant demand underpinned by the structural growth of e-commerce and last-mile logistics.”

With Montague Gardens’ vacancy rates consistently below national averages and demand at an all-time high, the strong uptake at Creation Works underscores the resilience of the Western Cape’s industrial property market and the ability of Inospace to stay ahead of market trends.

To find out more visit https://www.inospace.com/property-for-sale/warehouses-montague-gardens.