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Western Cape-focused property group Spear Reit is investing about R90m to develop a 7,150m² national distribution centre for storage and homeware retailer Mambos Storage & Home in Blackheath, Cape Town.Mambos sells storage, homeware and related lifestyle products through its retail network and operates 22 stores across South Africa. The retailer is looking to expand its national footprint as it grows its customer base.Construction is already under way and is expected to be completed by mid-2027. The facility will serve as Mambos’ national distribution hub and house its head office and supply chain operations, the group said.The investment comes as demand for well-located industrial and logistics space remains strong in the Western Cape, with Blackheath emerging as a key node for warehousing and distribution.The area’s access to major transport routes and proximity to Cape Town International Airport have made it attractive to logistics and distribution operators. Limited availability of appropriately zoned land and quality industrial stock has also supported demand.Spear CEO Quintin Rossi said the development was being undertaken against a backdrop of sustained demand for industrial property in the province. “Blackheath continues to demonstrate strong industrial demand, supported by its strategic location, access to major transport routes and proximity to Cape Town International Airport,” Rossi said.Businesses should not be constrained by the space they occupy. As operational requirements evolve, our objective is to ensure our properties evolve with them— James Bylos, Spear’s head of leasingThe project also forms part of Spear’s strategy of extracting value from its existing portfolio by investing in properties where its tenants need additional space.“This new development forms part of Spear’s active asset-management strategy to unlock embedded value in an earnings-positive manner within our core portfolio,” Rossi said.The new facility is expected to increase its capacity to handle higher volumes while improving its logistics and distribution operations.Mambos CEO Demetre Nikolopoulos said the Blackheath property already played an important role in the business as its head office and distribution hub. “As we continue to grow, additional capacity and operational efficiencies become increasingly important,” Nikolopoulos said.Read: Why Cape industrial landlords are building warehouses ahead of leasesThe development also extends a long-standing relationship between Spear and Mambos, with the retailer moving from one Spear property solution to another as its space requirements increase.Spear’s head of leasing, James Bylos, said the development reflected the group’s approach of working closely with tenants as their businesses evolve. “Businesses should not be constrained by the space they occupy. As operational requirements evolve, our objective is to ensure our properties evolve with them,” Bylos said.Nikolopoulos said Spear had worked with Mambos to develop a property solution that could support its longer-term expansion plans. “We look forward to continuing our strong and long-term partnership with Spear as we transition from one Spear real estate solution to another in support of Mambos’ ongoing growth,” he said.Business Day
