Truworths is building a new R900 million Western Cape distribution centre in King Air Industria, Cape Town, an Atterbury Property and Old Mutual Properties development.
Set to be completed in September 2023, the new warehouse will see Truworths’ various distribution facilities in Cape Town being consolidated and operating all under one roof.
Truworths said that it would spend about R430 million in the first phase, and the total development is expected to be completed in the 2025 financial year at a total estimated cost of R900 million.
The new facility will accommodate growth in the business for at least the next 10 years, the group said.
Truworths CFO, Emanuel Cristaudo says the business growth. enabled the company to scout a larger distribution centre to accommodate its future requirements.
This development comes hot on the heels of the retailer last week reporting a 49.9% rise in annual profit, with its retail sales growing by 9% to R18.5 billion, reports IOL.
The development project is a joint venture between King Air Industria and Truworths. Atterbury is the biggest owner of scarce, developable industrial land in Cape Town, a statement said Friday.
In addition, this land has seen high demand recently due to many companies opting to develop large distribution centres.
The development’s 53 000 square metre initial phase consists of a 3 000 square metre office and 50 000 square metre warehouse and includes the option to expand to 70 000 square metres.