Equites Property Fund divests five UK distribution centres

South African REIT Equites Property Fund Limited has sold five distribution centres in the UK to a fund managed by ICG Real Estate for £200.5 mln (€235.8 mln).

Logistics

This sale is part of Equites' strategy to reallocate capital from its UK portfolio to its more profitable development projects in South Africa, which is expected to generate approximately £95.5 mln (€112.2 mln) in cash.

The company's board decided to sell the UK properties after a thorough review, aiming to strengthen its financial position by reducing its loan-to-value ratio and focusing on its core logistics business in South Africa, where it has a strong competitive advantage. This move is expected to boost long-term growth in distributable earnings for shareholders.

The properties sold include distribution centres in Coventry, Reading, Burgess Hill, Barnsley, and Glasshoughton. As part of the transaction, the purchaser is taking over an existing Aviva debt of £105 mln (€123.4 mln) and settling intercompany loans of £85.4 mln (€100.3 mln).