Equites’ focus on Gauteng

Equites Property Fund, SA’s only exclusively logistics-focused real estate investment trust (Reit), says the country’s economic hub of Gauteng is where it will be focusing most of its investment over the next five to seven years.

Equites CEO Andrea Taverna-Turisan says the fund is planning around R4 billion in logistics property development in the province. He was speaking on Thursday at the Michelangelo Hotel in Sandton following the fund’s results presentation for the half-year to August.

The top-performing Reit continued its sector-beating performance, delivering a 9.3% increase in distribution per share to 74.43 cents for the period.

With its net asset value per share increasing 6% year on year, its total compounded annual growth came in the double digits at over 10%.

While its share price was up marginally following the release of its results, the stock has gained 10.25% so far this year.

Equites announced during its results presentation that construction on three new developments, worth just over R460 million, commenced at its flagship Equites Park Meadowview West precinct in Joburg in August.

Another R120 million logistics warehouse was completed in the same park in July.

“This gives you an idea of the kind of investment we are making in Gauteng. There is much more to come with some 400 000m2 in our development pipeline in the province over the next five to seven years,” says Taverna-Turisan.

“We have three major landholdings in the province. In addition to developments at Equites Park Meadowview West, we have strategic land parcels near Waterfall on Allandale Road and at the new Plumbago precinct, near OR Tambo Airport,” he adds.

Taverna-Turisan says Gauteng, and Joburg in particular, remains the economic hub for any distribution operation in sub-Saharan Africa.

“It continues to have considerable wealth, and with the mass urbanisation it is seeing, the region will remain a hub and gateway to southern Africa,” he notes.

He nevertheless cautions that SA’s macro-economic conditions are critical to the group’s roll-out of its R4 billion Gauteng development pipeline.

“While the economy remains under pressure, Equites’ focus exclusively on high-quality logistics assets has given it a defensive edge,” he says.