YW Capital and RMB complete R2.25bn Pepkor logistics property deal through IronOak
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YW Capital and RMB have completed a R2.25 billion transaction that places three Pepkor distribution centres into a new industrial property platform, IronOak, releasing about R2 billion of capital to the retailer.
South African corporate advisory and investment firm YW Capital and RMB have completed a R2.25 billion Pepkor logistics property transaction through IronOak, YW Capital's real estate investment platform focused on industrial and logistics property.
As its cornerstone investment, IronOak acquired a 65% shareholding in Badger Properties, the company whose portfolio comprises three distribution centres supporting PEP and Ackermans' retail operations across Southern Africa. Pepkor retains the remaining 35% shareholding and the transaction, completed on 8 September, releases approximately R2 billion in capital to the retailer.
The portfolio comprises about 280,000 square metres of gross lettable area. It includes the Ackermans and PEP distribution centres in Hammarsdale, KwaZulu-Natal, and the PEP distribution centre in Kuilsriver in the Western Cape.
Shaun Barnard, Head of Asset Management at Pepkor, said capital allocation discipline drove the transaction. "Partnering with IronOak releases the bulk of this capital while we retain a shareholding in the portfolio and secure long-term occupation of the facilities our stores depend on," he said.
Mesh Pillay, chief executive of YW Capital, said the platform brings long-term capital to assets that businesses depend on while giving property owners greater flexibility in how they fund their operations. RMB committed seed equity alongside YW Capital and provided financing and structuring capability to the fund.
IronOak said it will pursue opportunities beyond retail, targeting businesses that own industrial or logistics property and want to release capital to fund growth or reinvest in their core operations.