Fortress Reit recently signed its biggest logistics development to date with Pick n Pay at its Eastport Logistics Park in Gauteng. The new development, owned 40% by Fortress and 60% by Pick n Pay once the subdivision has been approved and the transfer completed, will cover 36 hectares.
Fortress will fund the incremental capital required for the development from existing available facilities. The development is scheduled for completion in 2023.
The long-term Pick n Pay lease with an option to extend, as well as grow the size and footprint of the facility, is set to “position Fortress’s Eastport Logistics Park and the broader R21 area as South Africa’s prime logistics hub as allied industries and businesses seek proximity and rational integration into the country’s leading logistics ecosystem”, said Steven Brown, CEO of Fortress Reit.
Pieter Boon, CEO of Pick n Pay announced that the South African grocery chain’s newest inland distribution centre is a key investment in competitive advantage. Fortress’s Eastport facility will “help us deliver key logistics and supply chain innovations, achieving efficiencies and growing market share at a time when faster and cheaper service of our stores has never been more important to deliver on our customer promise of low prices and reliable service”, said Boone.