Industrial property-focused Equites scores its largest acquisition
Property fund buys Gauteng distribution centre that has a long lease with Simba
Equites Property Fund has made its largest acquisition since listing, having bought a distribution centre for nearly half-a-billion rand, pushing its asset base to close to R12bn. Equites, the only industrial property-focused fund listed on the JSE, said the property had a long lease in place with consumer goods group Simba. The Gauteng distribution centre was bought for R461.9m from Investec Property Fund. Distribution centres and high-tech warehouses are the most sought after property assets in SA, with companies wanting to benefit from future growth in online shopping and also wanting to sign up groups who are trying to establish supply chains. Following the deal, Equites will have grown its asset base more than 11-fold since listing with only R1bn in assets in June 2014. It has been one of the most aggressive property funds over this period, investing across SA and the UK.
This growth has been accompanied by steady share price increases of 32% in 2017, nearly 24% in 2016 a...
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