SOUTH AFRICA – Johannesburg Stock Exchange listed specialist logistics property fund, Equites, has sold two UK distribution warehouses to real estate funds managed by Blackstone for US59 million representing a 4.79 percent net exit yield and 6 percent premium to Equites’ book value.
The sale proceeds would be re-invested into distribution warehouse development by the Equites/Newlands joint venture, with the new warehouses let on 20- and 15-year leases to Hermes and Amazon, a statement said.
The transaction would realise net cash proceeds of US$32.2 million to Equites, while lowering the loan-to-value ratio across its portfolio.
The new partnership with Newlands in the UK had gained significant momentum, Equites’ board said.
“The partnership has recently concluded two development agreements with Amazon and Hermes, with total development costs of US$55.7 million and US$97.9 million, respectively. The two facilities that Equites will ultimately hold will be brand-new premium logistics facilities, built to institutional standards and let to high quality tenants on long-term leases,” the statement added.
Equites chief executive Andrea Taverna Turisan said they had curated a high-quality UK logistics portfolio since entering the UK market in 2016 and the total portfolio value was now in excess of US4435 million.
“The partnership recently concluded two development agreements with Amazon and Hermes, with total development costs of US$55.7 million and US$97.9 million, respectively”
The company has a proven ability to identify and acquire well located logistics assets that meet the requirements of large, institutional tenants.
The logistics asset class has proven to outperform in key global markets over time, and through careful acquisition and development activity, they have managed to unlock significant value for shareholders.
It prides itself on being able to provide high quality logistics assets to our tenants, enabling them with solutions to grow, optimise and redefine their businesses.