Growthpoint, CSI conclude multifaceted transaction

In Growthpoint’s largest manufacturing sector transaction, both by deal value and square metres, CSI now occupies its new Isando facility on a ten year triple-net lease basis. Located on the corner of Quality and Barlow Roads, the premises will be used for manufacturing, storing and distributing its impressive range of aluminium, stainless steel and roofing products. It spans 48,000m², made up of 44,500m² factory and warehouse space and 3,500m² of offices.

Engelbert Binedell, Growthpoint Industrial Division director, says his team is thrilled to have a leading South African business like CSI as a partner in Growthpoint’s largest industrial facility.

“This is a significant transaction for Growthpoint and it has proven to be unique and multifaceted. We’ve worked closely with CSI to optimise this property to meet its business needs, invested considerable capital of R40m in refurbishing the facility to client specifications and acquired two new properties as part of the transaction. All this was achieved within an exacting timetable. We are exceptionally pleased with the results.”

Cost effective solution

Chris Ransome, executive chairman of CSI, states: “This is a landmark development for our newly merged Stalcor and Global Roofing Solutions businesses which have a history spanning over 60 years. The Growthpoint team have delivered an exceptional, cost effective and all-encompassing solution to our bespoke property requirements in both Gauteng and the Western Cape.”

The multi-layered transaction builds on several proven relationships. Growthpoint and CSI have collaborated on other properties, with Growthpoint recently concluding a five-year lease with Stalcor in an 8,526m² warehouse in Epping, Cape Town. In addition, CSI is replacing Robor as the tenant in the Isando building, and both are subsidiaries of Tiso Blackstar.

The standing relationship with Robor helped drive the building’s refurbishment forward swiftly, as it allowed Growthpoint early access to begin the renovation of the factory floor and offices. This valuable preparation time meant that CSI was able to operate from its smart new facility only a month after Robor moved out, even with the large-scale refurbishment of the entire premises.

Jason Reeves of Growthpoint’s Industrial Property team, explains that due to Robor’s former tenancy, CSI was well aware of the property and all of its attributes. “It is an ideal location that consolidates CSI’s various divisions in a single facility to optimise the efficiencies within its business.”

Extensive refurbishment

A sought-after industrial area, Isando benefits from close proximity to OR Tambo International Airport. It is well located between the R24 and N12 with easy access onto these arterials at various points.

Growthpoint’s refurbishment of the property was extensive. The upgrade involved the casting of a 10,000m² concrete floor in the factory area, constructing a new 2,500m² office block and a complete upgrade to all the existing offices with new carpets, ceilings and energy-efficient lighting and air conditioning.

As part of the transaction, Growthpoint acquired two properties previously occupied by CSI. They are the 22,000m² Global Roofing Solutions building in Anderbolt, Boksburg, and the 4,700m² Stalcor building in Eastgate Extension, Marlboro. CSI’s divisions from these buildings will move to the Isando facility, and Growthpoint will incorporate the properties into its portfolio to optimise their use.