Owning your warehouse or factory near Cape Town International Airport lets you fix your occupancy cost and build equity, but only if you choose the right node, structure the finance properly and complete the checks before you sign. This guide is for logistics, warehousing and manufacturing businesses that are thinking about buying rather than renting.
Why owner-occupiers buy
Most owner-occupiers buy to control their rental overhead and to build a property asset that grows in value.
- Control of cost. A purchase takes you out of annual rental escalations and lease renewal negotiations.
- Capital gains. Owner-occupiers typically take a long-term view and benefit if the property appreciates.
- Protection of your investment. Businesses that put large amounts of capital into their premises, such as manufacturers, face expensive relocation costs if they cannot agree renewal rentals with a landlord.
- A retirement asset. Some owners later sell the business and keep the property as an income-producing investment, with the business they sold as the long-term tenant.
There is a real counter-argument. Capital tied up in a building is not available to the business, and for some operators that capital earns more working in the operation. Compare both routes before you decide (see “Buy, lease, build or sell and lease back” below).
What you can buy in the four airport nodes
Tenure decides your options first: you can buy buildings in some nodes, but the land at the Airport Precinct is leasehold only.
| Node | Can you buy? | What to know |
|---|---|---|
| Airport Industria | Yes, existing buildings | Two areas divided by the airport approach road, with several established industrial parks. A City Improvement District has significantly improved security. Older units are often around 5 m to the eaves. |
| Airport City | Yes, existing buildings | Sits between the airport and the N2. New and modern warehouses predominate, with strong security. |
| Airport Precinct | No. Leasehold only | The land is owned by ACSA and is never sold. Includes CTX Business Park, a logistics and freight park. |
| King Air Industria | Yes, leasehold, on a turnkey basis only | A 70-hectare estate. Leasehold property can be bought on a turnkey basis only, usually through a joint venture with the land owner, with an option to buy the owner out at a future date at a price set by an agreed formula. Turnkey buildings can be delivered within 12 months of lease signature. |
Two other routes are worth knowing about:
- Turnkey development. We have access to industrial land for development in Airport Industria, Airport City and King Air, among other areas. Where no vacant land is available, a site can be assembled from land with obsolete buildings that can be demolished. A purpose-built, energy-efficient building can bring large cost savings.
- Vacant land. There is a fair amount of vacant industrial land in Cape Town, but very little is for sale. Most large tracts are held by property funds in joint ventures with developers, and premium prices are asked when land does come to market.
Many properties are known about well before they reach the market, and investment properties often sell within days and are seldom advertised. If you are serious about buying, tell us your brief early. See the for-sale listings and our owner-occupier sales page.
What to look for in a building you will own
When you own the building, its limits become your limits, so check these before you shortlist.
| Check | Why it matters to an owner |
|---|---|
| Clear height and racking | Sets how high you can stack. Ask whether you plan high-bay racking or automation, and check floor flatness and sprinkler needs. |
| Loading doors, truck access and yard | Controls throughput. Check door type, truck turning circle, yard size and security. |
| Power | Check installed capacity in kVA, whether supply is three-phase, and whether a generator, solar PV or battery system is in place. |
| Zoning and consent uses | Zoning, consent uses and fire-department requirements differ by property and by the goods you handle, for example hazardous, flammable or food products. |
| Room to expand | Check coverage, height and building lines so you know what you can add. |
| Approved plans and compliance | Check that buildings and alterations are approved, and ask for occupation certificates and electrical compliance certificates. |
| Roof, structure and services | Look for cracks and roof condition, and inspect air-conditioning, lifts and other plant. A specialist can estimate future maintenance. |
| Contamination | If previous users handled hazardous materials or asbestos, get a report from an environmental expert. |
Buy, lease, build or sell and lease back
There are four routes, and the right one depends on how your business uses its capital.
- Buy an existing building. You control cost and benefit from capital growth, but you tie up capital.
- Lease. You keep capital in the business, but you accept annual escalations, typically 7–8%, and renewal risk. See our guide for logistics and warehousing occupiers.
- Build a turnkey building. You get a purpose-built building on your specification, with a longer lead time.
- Sell and lease back. If you already own your property, you can sell it to an investor and lease it back. This can unlock approximately 30% more capital than mortgaging the property, and bridging finance can speed up access. The rent is fully tax-deductible to the business. See sale and leaseback.
Finance and costs
Commercial property finance is a far harsher process than a residential bond, so start it early. For recent sale prices per m², see the Airport Property Barometer.
- Loan to value. Owner-occupiers typically borrow between 70 and 75% of the property’s value, so plan for a deposit of 25 to 30%.
- Bond term. The typical bond period granted by financial institutions is 10 years.
- Documents banks ask for. These include the borrowing entity’s registration documents, audited financials that are no more than a year old, management accounts not older than 2 months, personal statements of assets and liabilities of shareholders or sureties not older than 3 months, a signed deed of sale, and the value, source and timing of your own contribution. If you are building, add drawings, specifications, the professional team and costing.
- Beyond the price. Allow for VAT, which depends on whether the seller is a VAT vendor, municipal rates, insurance, maintenance and transfer costs. Ask your attorney and bank for current figures.
How a purchase gets done
- Brief. Tell us the floor area, clear height, loading doors, yard, power and budget you need, and your timeline.
- Shortlist and view. We match your brief against what is for sale and what is coming to market.
- Offer. A signed deed of sale sets the price and conditions. Banks need a copy for the finance application.
- Finance. The bank assesses the borrowing entity, the sureties and the property. Prepare the documents early.
- Due diligence. Complete the checks below before you commit.
- Transfer. Attorneys register the transfer at the Deeds Registry. The seller’s existing bond is normally cancelled before registration.
- Occupation. Agree the date, and any alterations you need, in the sale agreement.
Checks before you sign
Our industrial property purchase checklist is the full list. The main points are:
- Seller. Confirm the registered name and whether the seller is a VAT vendor, which affects how the sale is structured. Check whether the seller is resident in South Africa for tax purposes, and ask about material defects. If the seller is an individual, the marital regime matters, so get both spouses to sign if in doubt.
- Title deed. Check the latest deed for the owner, the description and area, conditions of title, restrictions and servitudes. Ask your attorneys for a written report after a Deeds Registry search.
- Zoning and plans. Get the official zoning sheet and confirm the approved building plans cover the existing buildings and alterations. Check for extra development rights and encroachments.
- Rates and utilities. Get the municipal valuation certificate and check present rates and possible increases. Check water pressure for sprinklers, electricity, sewerage, stormwater and compliance with the Occupational Health and Safety Act.
- Land and building. Inspect the whole site and buildings, and use specialists where the size or nature of the property calls for it. Check soil and subsurface conditions where relevant.
- Tenants, if part is let. Ask for lease terms, rentals, escalations and the financial strength of the tenants.
The checklist’s own advice applies: over-analysis can mean you never conclude a transaction, and no transaction is perfect.
Next steps
Send us a short brief and we will come back with options. Call 021 380 1111 or contact us. You can also read our industrial property FAQs and the guide for logistics and warehousing occupiers.
