Equites ex­pects a very rosy fu­ture

Many de­vel­op­ment projects

The Mercury - - COMPANIES - Roy Cokayne

LISTED spe­cial­ist in­dus­trial prop­erty devel­oper and land­lord Equites Prop­erty Fund has a to­tal de­vel­op­ment pipe­line in progress of R1.3 bil­lion.

An­drea Tav­erna-Turisan, the chief ex­ec­u­tive of Equites, said yes­ter­day that the fund had strong in-house de­vel­op­ment ex­per­tise and owned a port­fo­lio of strate­gic land hold­ings for fu­ture devel­op­ments.

Tav­erna-Turisan said in ad­di­tion to the re­cently com­pleted devel­op­ments, the com­pany had con­cluded a de­vel­op­ment lease for a 15 155m² mod­ern lo­gis­tics fa­cil­ity and of­fices for Premier val­ued at R165 mil­lion in the Lords View In­dus­trial Park in Gaut­eng and had em­barked on three spec­u­la­tive devel­op­ments at At­lantic Hills in Dur­banville with a com­bined gross let­table area of 14 956m² and a cap­i­tal value of R152m.

He said Equites had also com­menced de­vel­op­ment in July this year on three spec­u­la­tive devel­op­ments at At­lantic Hills in Dur­banville in Cape Town with a com­bined gross let­table area of 14 956m² at a cost of R152m.

Tav­erna-Turisan said Equites had a fur­ther 31 hectares of prime, ser­viced in­dus­tri­ally zoned land avail­able for de­vel­op­ment in Cape Town and Gaut­eng and was pur­su­ing var­i­ous op­por­tu­ni­ties for dis­tri­bu­tion cen­tres on these parcels of land.

Spec­u­la­tive

In the six months month to Au­gust, Equites com­pleted a 3 280m² spec­u­la­tive de­vel­op­ment in Mead­owview in Gaut­eng, which had been let to Im­pe­rial Man­aged Lo­gis­tics on a three-year lease; a new 28 527m² dis­tri­bu­tion cen­tre and head of­fice on a 10-year lease for Rohlig-Grindrod in Mead­owview; and the con­struc­tion of a new 17 598m² dis­tri­bu­tion cen­tre and head of­fice for Puma South Africa on a 10-year lease in Equites Park in At­lantis Hills in Cape Town.

Tav­erna-Turisan added that the com­pany had in­di­cated it would re­duce its non-core of­fice prop­er­ties at the ap­pro­pri­ate time and had con­cluded trans­ac­tions to sell three of­fice build­ings si­t­u­ated in Cape Town plus the small of­fice pre­vi­ously oc­cu­pied by Puma for R234m.

He said more than 97 per­cent of to­tal rev­enue was now de­rived from in­dus­trial and lo­gis­tics as­sets and they ex­pected to dis­pose of its last two re­main­ing of­fice build­ings in Gaut­eng in the near fu­ture.

Equites made two ac­qui­si­tions in the UK in the re­port­ing pe­riod.

They were the ac­qui­si­tion of a 19 511m² dis­tri­bu­tion cen­tre that was be­ing de­vel­oped by Prol­o­gis in Stoke-on-Trent in Novem­ber last year for £18.1m (R324.73m) and a re­cently de­vel­oped 19 909m² cross dock­ing dis­tri­bu­tion cen­tre in Coven­try in July this year from Travis Perkins Prop­er­ties for £41m.

Since list­ing in 2014, the com­pany has in­creased its port­fo­lio of in­dus­trial and lo­gis­tics as­sets in South Africa and the United King­dom to R6.8bn from R1bn.

Equites yes­ter­day re­ported a 12.02 per­cent in­crease in dis­tri­bu­tions a share to 60.98 cents in the six months to Au­gust from 54.44c in the prior pe­riod.

The dis­tri­bu­tion for the pe­riod was at the up­per end of its guid­ance of 10 per­cent to 12 per­cent dis­tri­bu­tion growth for the 2018 fi­nan­cial year.

Rev­enue rose 5 per­cent R262.6m from R249.9m.

Prop­erty op­er­at­ing and man­age­ment ex­penses de­clined by 4 per­cent to R38.39m from R40m.

Shares in Equites rose 1.01 per­cent on the JSE yes­ter­day to close at R21.01. to

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