Anyone who has travelled along the R21 near OR Tambo Internationally recently couldn’t help but notice DSV’s new state of the art logistics campus. Set on 38 hectares of land this specialist logistics facility was completed at the end of 2020 and is now home to most of DSV’s Gauteng business units.
Known as DSV Campus the centre is located on 38 hectares of land in Riverfields, near Pomona and consists of 142 129 m² of gross lettable area. The facility is the biggest logistics centre in Africa and took nearly 2 years to build. The space is divided into 87 000 m² of logistics warehousing with 14 m eave height, 40 000 m² of cross dock warehousing with 9 m eaves, and 10 500 m² of 3 story premium grade office space.
DSV Campus (Courtesy Sika)
The Campus was designed to be as self sustainable and energy efficient as possible and is capable of producing nearly 1 megawatt of electricity via a photovoltaic system and boasts 5 boreholes, a water filtration system, double glazing, and LED lighting.
On Wednesday 13 October Equites Property Fund announced to its shareholders that it intends to enter into a joint venture with Eskom Pension and Provident Fund (EPPF) in order to acquire the DSV Campus. This joint venture will be structured in that Equites will hold 51% of the share capital and EPPF will hold the remaining 49%. The purchase price payable to the current owner, DSV Solutions Proprietary Limited, is R2 050 000 000 and Equites will contribute R732 million in order to secure its majority shareholding in the venture.
DSV will in turn lease the property from the joint venture company from the date of registration of transfer on the back of a 10 year, double net lease with 2 renewal options of 3 years each. The initial proposed rental is R157 515 084 per annum (R13 126 257 per month) which equates to a through rental of R92.35/m².
The transaction is also subject to the following conditions being met:
- The completion of a due diligence by Equites to their satisfaction
- The purchaser and tenant entering into a lease agreement and all conditions therein being agreed to and met
- The purchaser meeting the BEE requirements duly set out by the seller
- Approval by the relevant competition authorities
Equites Property Fund Limited is a South African Real Estate Investment Trust (REIT) and a leader in the logistics property market with over R20 billion in assets in its current portfolio. This acquisition meets its objective of investing in high quality logistics assets and the intention with this joint venture with EPPF is to create a strategic venture investing further in a world class logistics portfolio. EPFF is currently one of the largest asset managers in South Africa managing R145 billion in assets.
The tenant is a subsidiary of DSV Solutions A/S which is wholly owned by DSV, and focused on warehousing and related value add services throughout South Africa.
The property is strategically located along the R21 freeway minutes from OR Tambo with excellent exposure onto the freeway. The node has seen substantial investment by property owners and developers over the last few years due to demand from tenants wanting to be in the area. Equites together with JT Ross and Fortress already hold substantial land tracts which are currently being developed in logistics parks the likes of Eastport Logistics Park, Plumbago Business Park, Equites Park Riverfields and Terminal Park.
For property related enquiries in the Pomona and general East Rand area, contact us today.