Inospace Targets $60m Expansion After Sales

Inospace, one of South Africa’s largest private owners and operators of multi-let industrial properties, is targeting more than $60 million in new acquisitions after completing R545 million ($32.8 million) in asset disposals, reinforcing demand for SME-focused logistics and urban warehouse space.

The company said the capital recycling programme has created fresh firepower for expansion into high-yield industrial assets across Cape Town and Johannesburg, where demand for flexible, multi-let industrial space continues to outpace supply.

Premium disposals across key industrial nodes

The recent sell-down included a mix of sectional-title units and full industrial parks, all concluded above book value.

Key transactions included Ship Works in Paarden Eiland for R98 million ($5.8 million), Prima Works in Epping Industria for R60 million ($3.6 million), and Island Workshops for R25 million ($1.5 million). The group also disposed of vacant land in Bellville Triangle for R34 million ($2 million) and Jet Exchange in Jet Park, Johannesburg.

The largest structured transaction, Creation Works in Montague Gardens, was acquired for R119 million and is being sold for a total of R205 million, with 61% of units already transferred within three months.

Capital discipline and portfolio rotation

Chief executive Rael Levitt said the group’s asset trading strategy is embedded in its operating model rather than driven by market timing.

He said proceeds from disposals form a “war chest” for reinvestment into higher-growth opportunities, enabling the firm to continuously refresh its portfolio and improve overall returns.

Levitt said the group remains focused on expanding its pipeline while maintaining disciplined capital allocation. The strategy combines acquisition, redevelopment, and selective disposal to maximise long-term returns.

The company’s approach centres on acquiring underutilised industrial assets, upgrading them, and either optimising yield or unlocking value through sectional-title sales.

SME logistics demand remains core driver

Founded in 2017, Inospace has built its platform around micro-warehousing, storage, and light industrial ecosystems designed for small and mid-sized enterprises.

The company now operates more than 50 industrial parks with over 2,100 tenants, serving e-commerce operators, logistics firms, and growing SMEs across South Africa’s two largest economic hubs.

As demand for flexible urban logistics infrastructure accelerates, Inospace is positioning itself as a key consolidator in South Africa’s evolving industrial property market.