Durban developer Shree Property Holdings has bought two large industrial sites in the South Durban Industrial Basin from Plascon and Tiger Brands. The family-owned group plans to spend more than R1.6 billion turning them into logistics warehouses near the Port of Durban.
Founding CEO Pran Shree confirmed the deal on Monday, Moneyweb reported. He said the group plans about 80 000m² of new warehousing on the two properties in South Coast Road.
“Some R1.6 billion will be invested in the two prime properties that our group has acquired in South Coast Road, with plans for around 80 000m² of new logistics warehousing,” Shree told Moneyweb.
The money is part of a R2 billion promise the group made at the 2026 KwaZulu-Natal Investment Conference. That event was held alongside SA Auto Week at Durban’s International Convention Centre. The commitment covers the next three years.
Shree said the rest of the R2 billion, about R400 million, will go into a new warehouse at Woodmead Industrial Park in Shakaskraal. Shakaskraal is on the North Coast in the iLembe District Municipality.
The two Durban properties are at 1236 South Coast Road and 1400 South Coast Road. Shree said one was once a Plascon factory. The other was bought from Tiger Brands and used to be a Beacon chocolate factory.
Each site covers about 60 000m², according to Shree. Each will get about 40 000m² of space under roof, plus hard container yards for large logistics work.
“These properties have been part of Durban’s industrial landscape for generations and have been home to businesses and brands that many South Africans immediately recognise,” Shree said. “We see tremendous value in being able to take sites with that history and reposition them for their next chapter.”
The group said the new sites will join other land it already owns in South Coast Road. Together they will form about 130 000m² of industrial land in one block.
That will be its second biggest industrial land parcel. The largest is Pran Park in TradeZone 1 at the Dube TradePort special economic zone, next to King Shaka International Airport.
Shree said the deals will grow the group’s footprint in the South Durban Basin to more than 700 000m². He said the area is close to the port and has good transport links, which makes it useful for warehousing and distribution.
The group’s property in KwaZulu-Natal already covers more than one million square metres, Shree said. He added that it wants to buy and build another 200 000m² of top grade industrial space in the province.
John Jack, CEO of Galetti Corporate Real Estate, said demand for industrial space near the port is very high. “Demand for industrial and logistics properties around the Durban port is just exceptional. You’re lucky if you can get property there,” he told Moneyweb.
Jack said an industrial property in Mobeni sold for R285 million at auction because of strong demand in that area. “For them to build new, is a no brainer, with probably some of the highest demand in the country,” he said.
Independent property analyst Keillen Ndlovu said industrial and logistics property has the lowest vacancy rate of any commercial property type in South Africa. He said national vacancies were 1.9% to June 2026, down from 2.2% a year earlier, according to MSCI figures.
The group said work at 1236 South Coast Road should be finished by March 2028. The project at 1400 South Coast Road is set to be completed by December 2028.
Source: this article is based on reporting by Moneyweb. Image: Moneyweb. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.