Equites SA portfolio fully occupied

Equites Property Fund, a logistics property developer, has recently revealed a R2.7 billion development pipeline in its first half results. The company reported a 4.1% jump in distributions per share, attributing the growth to the sharp rise in development opportunities in South Africa driven by the record demand for warehousing space. The CEO of Equites Property Fund, Andrea Taverna-Turisan, discussed the factors influencing the growing demand for warehousing space and the challenges faced by the industry. Taverna-Turisan attributed the surge in demand for warehousing space to the disruptions in global supply chains caused by the COVID-19 pandemic. He highlighted the shift from just-in-time supply chains to more resilient and efficient supply chain models that require modern infrastructure. Modern warehouses need to have specific features like increased height, flat floors, and ample yard space to accommodate the high volume of inventory and vehicle movement essential for speedy deliveries in today's market. The changing dynamics in supply chains and the need for resilient inventory management have propelled the demand for warehousing space across various sectors, from retailers to third-party logistics providers and car manufacturers. Taverna-Turisan emphasized the significance of sustainability metrics in the modern business landscape, with clients requiring carbon-neutral and energy-efficient facilities that are often challenging to retrofit into existing buildings. One of the key factors driving the rental growth in the warehousing sector is the scarcity of land suitable for development. The increasing construction costs, coupled with infrastructure challenges, have contributed to the higher rental rates in the market. Despite the rising costs, Taverna-Turisan highlighted the operational efficiencies and cost savings offered by modern warehouses, making them a more economical choice in the long run. While South Africa presents a positive outlook with high demand and limited vacancy, the UK market faces different challenges. The UK's limited availability of prime warehousing space, coupled with stringent sustainability requirements, has created a supply-demand imbalance. The CEO emphasized the impact of Brexit and other economic factors on the UK market, highlighting the need for long-term investment strategies in the region. In the short term, Equites Property Fund is focused on expanding its existing facilities and signing new contracts to meet the growing demand. The company has secured several transactions with major clients and is working on speculative developments to further enhance its portfolio. With a busy pipeline of projects in South Africa and the UK, Equites Property Fund is poised for continued growth and success in the logistics property sector. As the CEO of Equites Property Fund, Andrea Taverna-Turisan remains optimistic about the company's future prospects and the opportunities presented by the evolving warehousing landscape. By addressing the changing demands of clients, investing in sustainable infrastructure, and leveraging operational efficiencies, Equites Property Fund is well-positioned to meet the dynamic needs of the market and drive further growth in the industry.