Major South African Company Exiting the UK
Major South African company exiting the UK — Equites Property Fund, one of South Africa’s leading real estate investment trusts (REITs), is officially withdrawing from its UK operations to refocus its investments at home. The move marks a strategic turning point for the company and signals renewed confidence in South Africa’s logistics real estate sector.
Equites Property Fund Refocuses on South Africa
Equites Property Fund’s decision to exit the UK comes after nearly a decade of strong performance abroad. CEO Andrea Taverna-Turisan confirmed that while the company’s UK ventures have been profitable, future returns no longer justify new capital deployment.
“We’ve really performed well there over the last nine years,” said Taverna-Turisan. “But deploying new capital there just doesn’t give us the returns we’re looking for.”
The major South African company exiting the UK plans to repatriate approximately R10 billion, which will be strategically reinvested in South Africa’s booming logistics market.
Why Equites Is Leaving the UK
The decision to withdraw stems from shifting economic conditions in Europe. According to Taverna-Turisan, rental escalations in the UK occur only every five years, compared to South Africa’s annual model — limiting growth potential.
He explained, “We’re reaching the end of that five-year cycle, and we expect rental growth to slow down significantly.”
Despite this, Equites Property Fund’s UK portfolio remains healthy due to robust financial management, including a full hedging policy against rising interest rates.
“We’ve managed our debt smartly, keeping our UK operations stable, but now is the time to bring those funds home,” the CEO added.
Reinvesting R10 Billion into South Africa
The major South African company exiting the UK will redirect R10 billion into its local developments. Taverna-Turisan says the logistics sector in South Africa is thriving, driven by e-commerce growth, infrastructure expansion, and rising demand for high-quality warehouse spaces.
“Next year is going to be a bumper year for us,” he said. “We’re working on large-scale projects that align with long-term market needs.”
Equites currently operates several developments, including a 25,000-square-meter project on the R21 at Riverfields, valued at R240 million. The company’s cautious yet ambitious approach involves selective speculative developments to ensure long-term profitability.
A Strong Balance Sheet and Smart Strategy
Equites Property Fund’s solid loan-to-value ratio of 37.2% reflects its financial resilience. With a balanced portfolio and disciplined capital deployment, the company aims to strengthen its local footprint.
“We’re in good shape,” said Taverna-Turisan. “Deploying capital intelligently in South Africa, with quality tenants and long leases, is where we see the best opportunity.”
Equites’ hands-on management style has been key to maintaining property standards and tenant satisfaction. “We perform condition reports twice a year to ensure maintenance standards are met — our tenants appreciate that level of diligence,” he explained.
Long-Term Leases and Strong Land Assets
Equites’ logistics portfolio benefits from long-term leases averaging 14.1 years, significantly longer than typical retail or office contracts. The company’s extensive land holdings of 47 hectares, valued at over R500 million, enable rapid response to new market opportunities.
“Owning our land gives us flexibility,” Taverna-Turisan stated. “It allows us to move quickly when opportunities arise.”
This foundation positions Equites as a leader in the South African investment and logistics real estate sectors, supporting the economy while creating sustainable growth opportunities.
What the Exit Means for South Africa
The major South African company exiting the UK is expected to have a ripple effect on the local property market. By reinvesting billions into South Africa, Equites aims to stimulate job creation, infrastructure growth, and renewed investor confidence in the nation’s logistics sector.
Economists note that the move aligns with a broader trend of South African companies repatriating capital to capitalize on favorable domestic growth conditions.
“Bringing back R10 billion is not just a financial move; it’s a statement of confidence in South Africa’s economic future,” one analyst commented.
A Decade Abroad, a Future at Home
Equites’ UK ventures have contributed significantly to its global credibility and experience. However, the decision to exit the UK marks the beginning of a new chapter focused on strengthening South Africa’s position in global logistics and real estate.
Since its JSE listing in 2014, Equites’ portfolio value has grown from R1 billion to R28.3 billion — a testament to its strategic management and long-term vision. Now, the company is redirecting that expertise and capital to build an even stronger local presence.
Conclusion: A Bold Move for a Brighter Future
The major South African company exiting the UK, Equites Property Fund, is not retreating — it’s repositioning for growth where it matters most. By bringing home R10 billion and investing it in logistics real estate, Equites reaffirms its commitment to national economic development and sustainable investment.
With a strong balance sheet, loyal tenants, and visionary leadership, Equites Property Fund stands ready to shape the future of South Africa’s logistics landscape.
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