Industrial Park holds promise for George

GEORGE NEWS - Since the acquisition of the former McCain's property in Nelson Mandela Boulevard by Johannesburg businessman Gert Nel 18 months ago, about R45-million has been spent on upgrading the premises.

Nel had gone ahead to spend millions on the property even though the registration of the title deed only happened in December last year. "Some lengthy approval processes caused a hold-up, but that is all out of the way now," he told the George Herald.

When he bought the place, mainly to move his electrical equipment factory down to George, most of the 30 000m² buildings stood empty and were in need of refurbishment.

But Nel was pleased with his acquisition because before long, strong interest from large-scale prospective occupants became apparent.

There was definite local demand for the massive cold storage facilities from where the McCain Foods processing plant used to dispatch tons of frozen foods over many years. "We are fortunate now to have four blue chip occupants among our total of 12 tenants," said a contented Nel.

Two of his 'blue chips', Simba (Pepsico) and Vector (Rainbow Chicken), came with the property with a long-term contract.

Lancewood and others

For another tenant, Lancewood, the massive cold storage facilities were a huge draw card. It now occupies a third of the premises. The other new big arrivals were Outeniqua Plastics and SANParks that started up a factory where Working for Water workers are producing furniture.

Power plant

To keep all these operations going requires an enormous amount of energy, currently supplied by George Municipality, but a biofuel power station on site will soon deliver 8MVA to provide in the total usage of the park. This is to be built and run by Actom. Detailed planning of the R300-million power station, which will comprise two units of 4MW each, is starting in February. It should be finished in 18 months' time.

"We have a-rent-to-own agreement with Actom in terms of which the plant becomes the property of AET after 10 years. With the ever rising Eskom tariffs, this plant will be an alternative source that will supply in all our electricity requirements. It will use 250t of wood chip per day when fully operational."

Backup

A backup system consisting of four high-voltage, 2MW generators will be installed within the next three to four months. With an output of 8MVA, they will be able to keep all tenants up and running during outages. "Backup power is non-negotiable for our tenants and we want to give them what they need so that they can get on with business."

Nel said lots of building activity can be expected for quite some time, as construction for more industrial buildings is underway to make provision for some of his existing tenants who require more space, as well as for prospective clients who have expressed interest.

Table Top Foods

A R600-million investment by Table Top Foods in a vegetable processing plant at the industrial park is being negotiated. "The vision is to create a black empowerment enterprise that will include a farm where some of the produce will be grown," said Nel.

Currently, a new service road is under construction that will in future also service a commercial park being planned on a section of open space on Nelson Mandela Boulevard.

"Job creation has been part of my vision from the beginning. More than 265 people are currently employed here, and many more job opportunities will be created when Lancewood becomes fully operational, other tenants expand, and as new tenants arrive. The park will also contribute to the local economy through annual rates and taxes of about R30-million."

Nel's lucrative investment turned out differently than initially envisaged and his plan to move his own factory here has fallen by the wayside. Buying this landmark property not only proved to be profitable, but the new owner could very well have set the stage for the classic George brand - Table Top Foods - to re-establish itself again.

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