Ricochet News

Valuer Puts R11 Million Price Tag On Vacant Property Wanted By Spar

NOVEMBER 6, 2014
Valuer Puts R11 Million Price Tag On Vacant Property Wanted By Spar

A price tag of R11 million has been placed on land in Perseverance that is wanted by Sparto expand its distribution centre.

A report to the Human Settlements Committee of the Nelson Mandela Bay Municipalitynotes that for the past 20 years Spar has operated a distribution centre in Perseverance, adding that the facility has been expanded to the point “where the site has reached its capacity,” and the company has been forced to rent additional off-site space to accommodate the volumes.

It points out that this has “proved costly due to duplication of various resources and the increased cost of transport to consolidate deliveries from different sites to the various Spar franchise stores”.

The report says that various options are under consideration, one of which is “to sell the Perseverance site and develop a Greenfield facility somewhere else in Port Elizabeth on a site able to accommodate future growth.

This, however would potentially mean the “loss of capital invested in the Perseverance site”.

The report says that the municipal land across from the Perseverance site “is an ideal alternative” to the other options “as it would result in consolidated operation (albeit bisected by a public road)”.

It adds that this would provide enough space “to construct an operation able to support the business well into the future”.

Further, it states, it would allow Spar “to make the best use of capital already invested in the Perseverance site”. - MetroMinutes