There are currently no properties available. To view other properties click here.
ATLANTIC HILLS & RIVERGATE
The Western Cape province of South Africa is a prime hub for industrial and logistics activities, benefiting from its strategic coastal location, access to major ports like Cape Town and Saldanha, and robust infrastructure including the N7 and R300 highways. Two emerging industrial precincts, Atlantic Hills and Rivergate in Sandown (near Milnerton, close to Cape Town's metropolitan area), exemplify the region's focus on modern, sustainable industrial development. These areas are part of broader initiatives to decongest central Cape Town while fostering economic growth in manufacturing, warehousing, and logistics. Atlantic Hills, developed by Abland and Redefine Properties and Rivergate developed by ASKA and Milnerton Estates, they offer integrated business environments tailored for efficiency and scalability. Below, I highlight key aspects for logistics and investment, followed by a description of available property types.
Key Aspects for Logistics
Both areas are designed with logistics in mind, leveraging proximity to transport networks to minimize lead times and costs. Key highlights include:
- Strategic Location and Connectivity:
- Atlantic Hills: Provides direct access to the N7 highway and is just 20-30 minutes from Cape Town International Airport. It's also within 20 km of the Port of Cape Town, ideal for import/export operations.
- Rivergate: Located in the west coast suburbs of Parklands, Blouberg and Sunningdale, it's adjacent to the R27 and N7, offering seamless connectivity to the CBD and port. This makes it a gateway for just-in-time delivery in the FMCG (fast-moving consumer goods) and e-commerce sectors.
- Infrastructure and Sustainability:
- Both precincts feature high-spec infrastructure, including 24/7 security, fiber-optic connectivity, and backup power (generators/solar hybrids) to combat load-shedding. Atlantic Hills emphasizes green logistics with LEED-certified designs and proximity to renewable energy projects. Rivergate integrates smart tech like automated warehousing systems.
- Shared advantages: Ample truck turning circles, loading docks, and intermodal facilities support high-volume operations.
- Sector Fit: These areas cater to diverse logistics needs, from cold-chain storage for agri-exports to high-tech distribution for automotive and renewables. Vacancy rates are low (under 5% as of mid-2025), driven by post-pandemic e-commerce growth.
Key Aspects for Investment
The Western Cape's industrial market has seen 8-10% annual yield growth since 2020, fueled by foreign direct investment (FDI) and government incentives. Atlantic Hills and Rivergate stand out for their high returns and low risk:
| Aspect | Atlantic Hills | Rivergate |
|---|---|---|
| Investment Yields | 9-11% gross yields. | 8-10% yields; benefits from Cape Town's stable municipal environment and infrastructure upgrades. |
| Growth Potential | High due to expansion (R10bn+ investments); attracts manufacturing FDI from Europe/Asia. Projected 15% value appreciation by 2027. | Strong suburban demand; part of "Corridor of Opportunity" with R5bn pipeline. 12% appreciation forecast amid urban migration. |
| Risk Factors | Lower competition but higher development costs; mitigated by government-backed infrastructure (e.g., Wesgro funding). | Traffic congestion risks offset by planned road upgrades; diversified tenant base reduces vacancy exposure. |
| Market Trends | Focus on sustainable assets; 20% of deals in renewables logistics (2024 data). | E-commerce boom; 30% tenant growth in last-mile delivery hubs. |
Investors should note the Western Cape's resilient economy (3.5% GDP growth in 2024), with these areas appealing to REITs like Redefine Properties and international funds. Due diligence via platforms like Lightstone or SAPOA reports is recommended for current cap rates.
Description of Available Property Types
Properties in these areas emphasize flexibility, modern builds, and customization, with a shift toward A-grade (newer, energy-efficient) stock. Sizes range from 500 m² for SMEs to 50,000+ m² for corporates, with rentals from R50-80/m²/month (escalating 7-9% annually).
- Warehouses and Distribution Centers:
- Predominant type: Single-story steel-frame structures with 8-12m eaves heights, insulated panels, and ESFR (early suppression fast-response) fire systems. Features include dock-levelers, drive-in access, and mezzanine offices. In Atlantic Hills, expect solar-ready roofs for off-grid ops; Rivergate offers climate-controlled units for perishables. Availability: 70% of listings, with build-to-suit options via developers like Propertuity.
- Light Industrial Units:
- Versatile spaces for assembly/manufacturing: 300-5,000 m², with concrete floors (load-bearing 5-10 kN/m²), 3-phase power, and crane provisions. Atlantic Hills suits heavy engineering (e.g., wind turbine components); Rivergate favors tech/light assembly. Often in park-style estates with shared amenities like canteens.
- Showrooms and Flex Spaces:
- Ground-floor retail-industrial hybrids (20-40% office component): Glass-fronted facades, parking ratios of 1:50 m², and branding signage. Ideal for logistics firms needing client-facing ops. Rivergate has more urban-style showrooms; Atlantic Hills focuses on bulkier flex units.
- Office-Industrial Hybrids:
- Emerging trend: 2,000-10,000 m² pods with 20-50% office fit-outs (open-plan, HVAC). Integrated into logistics parks for seamless operations.
Overall, these precincts represent low-entry barriers for investors (starting at R5-10m) and scalable solutions for logistics firms, positioning the Western Cape as Africa's logistics powerhouse.
