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Scania and Growthpoint extend their relationship with lease renewals at four properties

25th June 2018
Contributor: Growthpoint Properties

Growthpoint Properties has renewed four leases with Scania, extending its relationship with the global company that offers sales of trucks, buses, and services in more than 100 countries.

The leases were renewed for four properties located in established industrial areas across the province of Gauteng.

Two of the leases were renewed for seven-year periods, being the 12,650sqm South African headquarters of Scania in Aeroton, Johannesburg, and the 2,950sqm facility in Rosslyn, Pretoria. Leases renewed for five years include Scania's 4,380sqm Alrode facility and its 3,740sqm Elandsfontein facility, both on the East Rand.

All four buildings were built specifically for Scania, designed around its business and services to accommodate the large, heavy vehicles and engines synonymous with this leading brand.

The Aeroton headquarters includes space for Scania's offices, warehouses for assembly, storage and distribution. The other three facilities all offer Scania truck sales and services.

The lease extensions enabled Scania to achieve both cost efficiencies and key risk compliances for its business.

As part of the lease renewal transactions, Growthpoint made a R9 million investment in upgrading Scania's facilities, with a focus on its in-country HQ. Its Aeroton head office was given a facelift with a fresh, modern new fa├žade. The building also received a new fire tank and sprinkler system upgrade.

Both Scania's Aeroton and Rosslyn buildings were the subject of upgrades to their yards and external paving, with excellent yard facilities being vital for the heavy vehicles.

Errol Taylor, Head of Asset Management: Industrial at Growthpoint, says: "We are thrilled to extend our relationship with Scania and look forward to continuing our long and positive association with this respected international business. We are pleased to continue to provide Scania with premises that support its business goals and performance and ensure that it enjoys the best position for the future."

Growthpoint provides space to thrive with innovative and sustainable property solutions. It is an international property company and the largest South African primary REIT listed on the JSE. It owns and manages a diversified portfolio of 559 property assets, locally and internationally. Growthpoint is a Founding Member of GBCSA, a member of the GBCSA's Green Building Leader Network, a component of the FTSE4Good Emerging Index and has been included in the FTSE/JSE Responsible Investment Index for eight years running. It owns and co-owns the largest portfolio of certified green buildings of any company in South Africa.

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