The City of Ekurhuleni is set to witness the development of one of the most sought-after sites in the area - the construction of a business and logistics park for a whopping R1.3 billion.

Improvon, with exposure to R9 billion of warehousing and logistics assets across in South Africa and other sub-Saharan countries like Kenya and Zambia, in February, broke ground on a new facility, the Dakota Precinct at Rand Airport commercial park in Germiston.

The total development cost is estimated at R1.3-billion. Project financier Nedbank Property Partners, which is part of the Nedbank Group, SA's largest commercial property financier has also taken a 35% stake in the development, with Improvon owning the balance.

Despite South Africa's weak economic climate outlook, demand remains stable for prime warehouse and logistics assets, with logistics facilities remaining the best performing commercial asset class in the country.

The project will be split into five phases with a combined land area of 250 000 Sqm. Phase 1 of Dakota Precinct is expected to be completed in September, offering 7 600 Sqm under roof, which will ultimately increase to 13 000 Sqm of A-grade logistics and warehouse space.