Equites starts luring blue chip tenants
EQUITES Property Fund, a specialist in logistics properties, has started to sign up strong blue chip tenants far sooner than it expected after listing.
CEO Andrea TavernaTurisan said last week that Equites was attracting firms that were seeking clean, wellmanaged distribution centres.
The company achieved a coup when it concluded a development lease with Puma Sports Distributors for the construction of a new 16,262m² distribution centre and head office in Atlantic Hills in Cape Town with a capital value of R155m and a lease of nine years and 11 months.
Puma, a German sports equipment and fashion retailer, recently expanded its operations in SA and other emerging markets. This development is set be completed in August next year.
Equites also recently announced a R180m acquisition of a 25% interest in a 22,227m² distribution centre being developed for The Foschini Group, to be located at Lords View in Midrand, expected to be completed early next year at an initial yield of about 9%.
Mr Taverna-Turisan said new tie-ups with high-quality tenants would be announced before the end of this year. He also said the group’s portfolio was set to breach R4bn at the end of the February 2016 financial year.
The company listed in June last year with a market capitalisation of about R1.2bn.
Sesfikile Capital director Mohamed Kalla said Equites had presented itself as a credible investment barely a year after listing. “We like Equites and see them as a serious and credible owner and developer of indus- trial property in SA. The fund is still small enough to move the needle via acquisition and development opportunities.”
Adrian Jardine, an equity analyst at Avior Capital Markets said, “Given its increasing prominence, Equites has become an industrial developer of choice, evidenced by its ability to secure the developments of distribution centres for The Foschini Group and Puma.
“With a sizeable land bank still available, about 44ha, valued at R250m in strong nodes including Linbro Park and Midrand, we expect to see further committed developments for high-profile, blue chip tenants announced in the near future.”
Equites Property Fund listed in June last year