South Africa-based REIT Equites has sold a portfolio of five UK distribution centres to ICG Real Estate for £200,500,000.
The 997,982 sq ft portfolio comprises: 100 Scimitar Way, Coventry (214,741 sq ft); a 103,437 sq ft unit on Island Road, Reading; Unit 3 The Hub in Burgess Hill (54,727 sq ft); a 350,024 sq ft warehouse at Hoyland Common, Barnsley; and a 260,013 sq ft unit in Glasshoughton, West Yorkshire.
The transaction releases approximately £95,500,000 of net cash proceeds, which Equites intends to redeploy into the “higher-yielding South African development pipeline”.
In a stock market statement, Equites said: “Following a comprehensive strategic review, the board resolved to dispose of the UK portfolio in its entirety, marking a decisive step in Equites’ capital recycling strategy and the repositioning of the group around its core South African logistics platform, where Equites holds a clear competitive advantage and a deep pipeline of value-accretive opportunities.”
