The Orbit Africa Facility was acquired on a sale-and-leaseback basis, secured by a renewable 25-year US dollar denominated triple net lease underwritten by parent company guarantees for the duration of the lease term, as well as a rolling 3-year rental insurance policy furnished by the tenant for a 10-year term.
The second phase of the transaction will now see development of a further 14,741m2 of warehousing space to meet the tenants expansion needs on the bulk land acquired as part of the first phase of the transaction. Refurbishment of the existing 29,243m2 facility will also form part of this second phase. Phase 2 is expected to be completed in the fourth quarter of 2023 when it will be let on a new 20-year triple net lease to Orbit Products Africa Limited.
The Orbit Africa Facility upgrades are expected to create long lasting positive social, economic and environmental benefits for local communities and help to further strengthen the broader precinct as a prime logistics and supply chain hub, whilst the property will additionally benefit from being significantly improved to today’s modern FMCG industry standards and achieving an IFC EDGE green building certification.