Johannesburg – Equites Property Fund, South Africa’s only listed logistics-focused Real Estate Investment Trust (REIT), has announced its strategic decision to exit the UK market and focus entirely on growth opportunities within South Africa.
CEO Andrea Taverna-Turisan confirmed the group plans to dispose of its remaining seven UK logistics facilities, citing strong market interest and a shifting investment landscape.
“I don’t think the UK has had as good a property portfolio for sale in several years,” said Taverna-Turisan. “These are 100% highest quality logistics facilities, and we will certainly get our asking price and hopefully do better than that.”
A Strategic Pivot
Despite the UK portfolio delivering exceptional rental growth over the past year — with some assets achieving rental uplifts of up to 69% — Equites believes its capital can generate superior returns locally. The company noted the maturity of its UK assets, structural challenges in the UK economy, high cost of debt abroad, and a more favourable return profile in South Africa as key drivers behind the decision.
Over the past nine years, Equites developed 14 UK assets worth over £450 million, which peaked at a value of £550 million. Several assets, along with the group’s Newlands development platform, have already been sold, with the remainder now on the market.
South Africa: A Focused Growth Trajectory
Equites plans to reinvest the disposal proceeds into an “aggressive development cycle” in South Africa, targeting ESG-compliant logistics assets on long-term leases. The group’s loan-to-value (LTV) ratio has already dropped from 39.6% to 36%, and proceeds from the UK sale are expected to improve it further.
The South African portfolio — valued at R21.1 billion — continues to perform strongly:
- Like-for-like rental growth: 5.9%
- Valuation growth: 6%
- Vacancy rate: 0%
The full group portfolio, worth R27.7 billion, is 99.9% occupied, with long-term leases to blue-chip tenants, including multinationals and large listed companies.
Recent Projects and Future Pipeline
Among Equites’ key achievements in the 2025 financial year:
- Completion of a 16,721m² facility at Jet Park, let to SPAR Encore.
- Upgrades worth R195 million to Shoprite Centurion.
- Completion of two 20-year lease facilities for Shoprite:
- R1.2bn, 80,531m² facility at Wells Estate, Eastern Cape
- R1.3bn campus at Riverfields, Gauteng
Three speculative developments were also completed, with all being leased before or shortly after completion, reflecting strong demand in prime logistics hubs.
Green Logistics: Solar, Wheeling and ESG
Sustainability remains a cornerstone of Equites’ strategy. The group is expanding its solar generation and electricity wheeling capabilities, aiming to lower reliance on Eskom and meet tenants’ sustainability goals.
- Current solar capacity: 26.7 MW
- Additional capacity planned: 4.2 MW over 18–36 months
- Wheeling agreements: Active in City of Cape Town
- Power Purchase Agreements: Six PPAs in place
- Roof space for expansion: 750,000m² available
Looking Ahead
Taverna-Turisan confirmed that the focus will now shift to unlocking South Africa’s logistics development potential, particularly in high-demand, zoned and serviced nodes where supply is limited. This includes completion of the Jet Park precinct within the next 18 months.
“We believe the South African market is primed for superior returns, driven by increasing demand, ESG focus, and a significant supply-demand imbalance,” he concluded.
