Inospace Announces Its R1,25 Billion Last-mile Logistics Partnership With Fortress Reit
Inospace Announces Its R1,25 Billion Last-mile Logistics Partnership With Fortress Reit. South Africa’s leading owner and operator of branded business parks, Inospace has announced its partnership with Fortress Reit.
The deal will launch with an initial portfolio of twenty industrial properties in Cape Town and Johannesburg, Through Inospace, the partnership will offer a combination of warehouse, logistics, storage and work space at an initial valuation R1,25 billion. Fortress has contributed twelve multi-let assets, with Inospace contributing the balance. The combined portfolio spans a total lettable area of 200,000m², with over 600 tenants. All the parks will be branded and repurposed to provide Inospace’s value-enhancing facilities, such as staffed business hubs, meeting rooms and business storage.
The ongoing running of the assets in the JV are governed by a management contract, which ensures Inospace will utilise its technology-enabled platform to optimise, market and operate the assets. “Our collaboration with Fortress represents a significant opportunity for both companies, and the Inospace team is excited about being able to grow our footprint and enhance our value-adding customer offering as a result”, Inospace CEO Rael Levitt said in a statement.
Steve Brown, Fortress CEO said in a statement, “This partnership provides us with immediate scale in a niche and growing asset class through the formation of an attractive portfolio into which both Fortress and Inospace are contributing assets. We are excited to work alongside a specialised best in class operator that is reimagining the tenant/landlord relationship”.
The transaction resulted from a trial with two Fortress owned properties in Gauteng, which were successfully repositioned into serviced business and micro-logistics parks named Wadeville Works and Electron Exchange. Of this, Brown says, “Specialisation in smaller urban industrial and last-mile logistics spaces has proven to be a high growth sector”.
