Equites Property Fund and the Eskom Pension and Provident Fund (EPPF), one of South Africa’s largest asset managers, have announced the establishment of a joint venture (JV) company that will acquire the DSV Campus in Johannesburg for a purchase price of just over R2 billion.
The sale agreement, subject to certain conditions precedent, will be on the basis that the property is leased back to DSV Solutions on a long-term, ‘double-net’ lease agreement for an initial 10-year period.
The site, consisting of approximately 87 000m2 of warehouse space, 40 000m2 of cross-dock space, and a 3-storey P-grade office facility measuring over 10 500m2, has been constructed to the highest standards with measures in place to ensure the facility’s long-term sustainability.
The REIT will contribute a total of R732 million to the JV company, subscribing for 51% of the share capital while the EPPF will subscribe for the remaining 49%.
Finalisation of the sales agreement is expected to take place during November 2021.
