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Logistics property fund expands to UK

24 October 2017

Equites Property Fund has seen an annualised return of 28% per year over the past three years.

Equites is the only specialist logistics property fund listed on the Johannesburg Stock Exchange. 

Since listing in 2014, the company has increased its portfolio of mainly logistics assets in South Africa and the UK, from R1.0 billion (£55 million) to R6.8 billion (£374m).

CEO Andrea Taverna-Turisan said: “Equites has experienced continued demand for modern, well located, logistics facilities, as retailers aim to improve supply chain efficiency and third party logistics services become increasingly important. This demand, as well as the quality and resilience of Equites’ assets, have culminated in a fully let portfolio with a weighted average lease expiry in excess of seven years, as well as no material negative reversions or defaults in the period.”

The fund recently acquired a £41 million distribution centre in Coventry and let it to Kuehne + Nagel Ltd on a 15-year lease.

It also acquired a 19,511sq m distribution centre developed by Prologis in Stoke-on-Trent, and let it to DSV UK for a lease term of 10 years.

Since the expansion in the United Kingdom, the company is exposed to currency risk on its initial capital exposure as well as the underlying earnings from operations in the United Kingdom. Equites has entered into a cross-currency swap with a notional value of £32.905 million to mitigate this risk.