South African last-mile logistics unlisted property group Inospace has sold R545.5m worth of assets since the start of the year, driven by strong demand from small investors and small and medium-sized enterprise (SME) tenants that continues to reshape returns in the industrial property sector.The disposals include sectional title sell-offs to individual investors and occupiers, as well as outright sales of fully operating industrial parks across Cape Town and Johannesburg. The group said the strategy is aimed at crystallising gains from mature assets and recycling capital into new acquisitions.Inospace operates more than 50 industrial parks and hosts more than 2,100 SME tenants across Cape Town and Johannesburg, managing assets worth more than R3bn since its inception in 2012.“These disposals at a premium to book value allow us to capitalise on demand and continue to crystallise returns from our mature portfolio. It also provides us further flexibility to recycle capital into new opportunities in our existing portfolio, as well as into our pipeline of acquisitions,” said CEO and founder Rael Levitt. According to Levitt, the sales have freed up meaningful capital for Inospace, which the group intends to redeploy into underperforming industrial assets as it leans on its operating platform to lift occupancy, support rental growth and extract further value from its portfolio.Transactions include the Creation Works scheme in Montague Gardens, which is being sold out at a strong uplift after its acquisition, with most units already transferred. Plantation Works in Edenvale and Fly Works in Airport Industria have been fully sold and transferred, while Wynberg Works in Sandton completed its final unit sales after earlier delays linked to infrastructure challenges, with demand recovering as conditions improved ahead of the G20 conference. Metro Works on Johannesburg’s West Rand has also concluded its final unit sales, the group said.In a separate set of deals, outright disposals span Marine Works in Paarden Eiland, Prima Works in Epping Industria, Island Workshops in Paarden Eiland and vacant land in the Bellville Triangle, with the sale of Jet Exchange in Jet Park, it said.The group said its sectionalise-and-sell model remains central to its strategy, involving the acquisition of bulk industrial assets, their repositioning through active asset management and the subsequent sale of subdivided units at higher values.The group also partners with Fortress through a strategic joint venture that anchors a multibillion-rand portfolio of last-mile logistics and light industrial parks across South Africa. In addition, Inospace acquired Voortrekker Xchange from Fairvest earlier this year for R65m, adding a N7 corridor asset and further strengthening its exposure to urban logistics and storage nodes.