PowerPoint Presentation

New Development

Proposal For

PROPOSAL DESCRIPTION


PROPOSED NEW WAREHOUSE AND OFFICES FOR DHL AT
EASTPORT LOGISTICS PARK




DATE 17 June 2021


CLIENT DHL

GLA 16,977m²


OUR REFERENCE Let-001





INTRODUCTION


Thank you for the opportunity to submit this proposal.


The intention of this proposal is to provide a warehouse and associated offices for the effective storage
and distribution of goods.
The figures quoted are for the facility as based on the high-level specifications and requirements received
from the client. Changes made to the specifications will impact the proposal.

The site selected allows free movement and parking of articulated vehicles with cognizance given to
staging, stacking and security.

WHO WE ARE



Fortress, an internally asset managed Real Estate Investment (“REIT”) is a hybrid fund, investing in direct
properties and other listed real estate companies. We are the third-largest REIT in South Africa.














































Fortress invests in a diversified portfolio across logistics, retail, industrial and office sectors in South Africa. We have
European exposure to high-growth economies in Central and Eastern European market through our investment in
NEPI Rockcastle plc.

TABLE OF CONTENTS





1 INTRODUCTION TO PARK




2 PROPOSED POSITION




3 BUILDING SPECIFICATIONS





4 COMMERCIAL TERMS




5 CONSTRUCTION TIMELINE




6 BUILDING PLANS




7 RENDERINGS





8 EXCLUSIONS & VALIDITY

Proposed DHL




























Highway exposure







EASTPORT LOGISTICS PARK

Eastport Logistics Park is located along the R21 highway about 10 minutes from O.R Tambo International
airport. On completion, Eastport Logistics Park will offer 500,000m² of A-grade warehousing designed to
accommodate an array of logistics users. The park is already home to users such as Savino Del Bene,
Teralco, Clippa, Takealot, Teraco and Pick ‘n Pay Distribution.



PROPOSED POSITION

The proposed DHL warehouse has been highlighted in red in the site plan above and will be highly visible
from the R21 and R25 highways.

GLA:16,977 m² 40m Yard Depth 15m Eaves Height FM 2 Floor
12 Ton Pointload
Warehouse size: 15,383 m²

The warehouse eaves height is 15m and will be built at dock height and on grade. The
warehouse floor will be a 200mm, 30MPA concrete floor which can a 12-ton point load

on a rack foot of 200x160mm.
WAREHOUSE
DETAILS On grade canopies will be 9m wide and dock height canopies will be 5m.

The roof will be strengthened to allow for solar installation

Office size: 1,000 m²
The tenant will be granted an allowance of R2,500 per m² of Net office area to
OFFICE facilitate the installation of carpets, ceilings, view panels, plug points, air-conditioning,
DETAILS
and dry walling.

Warehouse mezzanine & pilot office size: 579m²

The warehouse mezzanine will include warehouse staff ablutions and
showers. Smaller pilot offices will be located below the warehouse mezzanine.
WAREHOUSE
MEZZANINE

Guardhouse size: 15m²

The facility will include its own dedicated guardhouse.
The entrance will be protected with 5 automated booms.
EXTERNAL
The hardstand will comprise of 180mm thick, 30MPA concrete flooring and the
WORKS
car park area will include inter-locking paving.


J2 classified roof sprinklers to the underside of the roof will be provided and the design

density will be 17.5mm. In rack sprinklers will be provided by the tenant.
FIRE

The lighting to the offices will be 400lux, and 200lux to the warehouse without
any racking included.
There will be 1 distribution board to the offices and 1 to the warehouse. There
ELECTRICAL
RETICULATION AND will be no standby generator included.
LIGHING

A grey water harvesting system has been allowed for to the value of

R 750,000
A battery bay has been allowed for to the value of R336,000
EXTRAS





Expansion land size: 8,284m²

The expansion land can be held rent free for a period of 2 years to allow the

tenant to expand the warehouse to a further 3,084m².
EXPANSION LAND





Data cabling and voice; Furniture; Toilet Standby generator and compressors;
accessories; Built-in cupboards; Shelving Canteen equipment and furniture,

and racking; In-rack sprinklers and in-rack benches, stoves, fridges, microwaves;

lighting; Dock levelers and equipment, Lockers; Caging and internal
Relocation of any plant; Refrigeration warehouse fencing; Dust-proofing to

EXLCUSIONS plant and equipment; UPS systems; PABX warehouse; Signage pylon; Lifts;
switchboards and telephone Access control booths and turnstiles;
installations; Safes Computer and IT installation;

Bullet-proof glass; Floor drains Biometric system; Rain water
harvesting, wash-bays, oil traps and

special drainage.

COMMERCIAL TERMS






R69.50 R8 6% 5





Net Rental Operating Costs Escalation rate Lease duration

per m² Per m² p.a In years


COMMERCIAL REFERENCES

Warehouse area: 15,383m²
Warehouse mezzanine: 472 m²
Pilot offices: 107 m²
TOTAL GLA:
Admin Offices: 1,000 m²
Refuse and Guardhouse: 15 m²
TOTAL GLA: 16,977 m²

MONTHLY RENTAL BREAKDOWN
(YEAR 1 – EXCLUDING VAT) Building of 16,977 m² at R69.50/m² R 1,179,901.50



The expansion land of 8,284m² can be held rent free for a period
EXPANSION LAND of 2 years to allow the tenant to expand the warehouse to a

further 3,084m².
ESCALATION RATE 6% per annum

Cost of R8.00 per m² covers:
Rates and Taxes
Park levies
OPERATING COSTS
Park security
Building insurance
(excludes water and electricity)

The tenant will be given the option to terminate the lease at the
end of year 3 giving the landlord 6 months notice to do so.
BREAK CLAUSE
Should the tenant exercise the option to terminate then an
amount of R7,954,433 is payable to the landlord.

DEVELOPMENT TIMELINE




APPROVAL TO PROCEED 14 July 2021


LEASE SIGNATURE 1 August 2021

PLAN SUBMISSIONS 1 August 2021 – 1 November 2022

EARTHWORKS 1 October 2022 – 1 January 2022

COMMENCE CONSTRUCTION 10 January 2022

BENEFICIAL OCCUPATION 1 August 2022

LEASE COMMENCEMENT 1 November 2022

SITE FOOTPRINT

RENDERINGS FOR DHL

EXISTING PARK IMAGES

EXISTING PARK IMAGES

VALIDITY


This proposal is valid until 1 August 2021 and will be subject to a formal written offer between DHL and
Fortress REIT Fund.
This proposal is subject Fortress REIT Limited’s board approval
The proposal is subject to the financial vetting of DHL


GRANT LEWINGTON

076 833 3407
[email protected]