JSE listed specialist logistics property fund, Equites, has announced that it has sold two high-quality UK distribution warehouses to real estate funds managed by Blackstone for £43 400 000, a 4.79% net exit yield and 6% premium to the company’s book value.
The proceeds of the sale will be re-invested into the development of prime distribution warehouses by the Equites / Newlands joint venture with the new warehouse let on twenty- and fifteen-year leases to Hermes and Amazon.
This transaction will realise net cash proceeds of £28 679 779 to Equites while lowering the loan-to-value (LTV) ratio across its portfolio. The newly formed strategic partnership with Newlands in the UK has gained significant momentum and the proceeds of this sale will be invested into the premium logistics products that will be developed by this partnership.
The partnership has recently concluded two development agreements with Amazon and Hermes, with total development costs of £41 million and £72 million, respectively. The two facilities that Equites will ultimately hold will be brand-new premium logistics facilities, built to institutional standards and let to high-quality tenants on long-term leases.
Andrea Taverna-Turisan, the CEO of Equites, commented: “We have curated a high-quality UK logistics portfolio since we entered the UK market in 2016, which today has a total portfolio value more than £320 million. We look forward to re-investing the proceeds from these disposals into our partnership with Newlands, which currently affords Equites an attractive pipeline of world-class logistics developments in the UK”.