Equites buys distribution centre for R460 million
JOHANNESBURG - Equites, the listed property fund, has agreed to acquire a distribution centre from Investec Property Fund (IPF) for R461.9 million.
The 40 428m2 distribution centre is located on a 101 769m2 site in Elandsfontein in Germiston,
It is let to Simba, part of the international stable of PepsiCo Inc, the second largest food and beverage business in the world, on a 10-year lease that commenced in November last year with an option to renew on expiry by another five years.
The estimated effective date of the transaction is November 1 this year.
Equites said logistics properties of this nature and quality rarely came to market and it had targeted key logistics nodes in Gauteng, Cape Town and Durban as its areas of focus in South Africa.
It said the acquisition of the property added to its high quality property portfolio in Gauteng.
The transaction was still subject to a number of conditions, including a satisfactory due diligence investigation by Equites and the approval of the competition authorities.
IPF said the purchase price reflected an exit yield of 7.0 percent and represented a 5.7 percent or R25 million premium to the current book value of the property assuming the disposal was effective from November 1.
It said the disposal was in line with its stated strategy of value creation through the efficient recycling of capital and would also enabled it to deleverage its balance sheet on both an earnings and net asset value accretive basis.