Shree Property buys two South Durban plants for R1.6bn logistics push
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Durban-based Shree Property Holdings has acquired the former Plascon and Beacon chocolate factories on South Coast Road and will invest about R1.6 billion converting them into roughly 80,000 square metres of logistics warehousing.
Private family-owned Durban development group Shree Property Holdings has acquired two prime industrial sites in the South Durban Industrial Basin from Plascon and Tiger Brands, with plans to invest more than R1.6 billion in new logistics warehousing near South Africa's busiest container port.
Founding CEO Pran Shree confirmed the move after the group committed to invest R2 billion over three years in Durban and Shakaskraal at the 2026 KwaZulu-Natal Investment Conference, held alongside the SA Auto Week event at Durban's International Convention Centre. About R1.6 billion will go into the two South Coast Road properties, with plans for around 80,000 square metres of new logistics warehousing, while the balance of roughly R400 million is being invested in a new warehousing facility at Woodmead Industrial Park in Shakaskraal in the iLembe District Municipality.
The acquisitions are 1236 South Coast Road and 1400 South Coast Road, two substantial industrial properties in one of Durban's most established manufacturing and logistics corridors. One previously housed a Plascon factory and the other, acquired from Tiger Brands, was a Beacon chocolates factory. Both sites are around 60,000 square metres each and will be redeveloped into distribution hubs of about 40,000 square metres under roof, together with hardened container yards capable of supporting large-scale logistics operations. The 1236 South Coast Road redevelopment is expected to be completed by March 2028, with 1400 South Coast Road targeted for December 2028.
Together with neighbouring industrial properties already owned by the group in South Coast Road, the acquisitions will form an approximately 130,000 square metre consolidated industrial landholding, its second-largest industrial parcel after the flagship Pran Park development within TradeZone 1 at the Dube TradePort special economic zone. The two acquisitions will lift Shree Property Holdings' footprint within the South Durban Basin to more than 700,000 square metres.
"For generations, the area has played an important role in Durban's manufacturing economy," Shree said, adding that proximity to the Port of Durban, established transport infrastructure and the surrounding industrial ecosystem are increasingly positioning the node for the next generation of logistics, warehousing and distribution operations. "We see tremendous value in being able to take sites with that history and reposition them for their next chapter," he said.
The group's portfolio in KwaZulu-Natal currently exceeds one million square metres, and Shree said it is looking at acquiring and developing an additional 200,000 square metres of AAA-grade industrial space across its strategic nodes. John Jack, CEO of Galetti Corporate Real Estate, told Moneyweb that demand for industrial and logistics property around the Durban port is exceptional, adding that "you're lucky if you can get property there".