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YW Capital, a South African corporate advisory and investment firm, and RMB, the corporate and investment banking arm of FirstRand, have completed a R2.25 billion ($138.2 million) logistics property transaction through IronOak, YW Capital’s industrial and logistics real estate investment platform.
IronOak acquired a 65% stake in Badger Properties, which owns three distribution centres used by Pepkor-owned retailers PEP and Ackermans. Pepkor, one of Southern Africa’s largest clothing and general merchandise retailers, retains the remaining 35% stake.
IronOak has been developed through a long-term partnership between YW Capital and RMB. RMB committed seed equity alongside YW Capital and provided financing to the fund.
The transaction releases about R2 billion ($122.9 million) in capital for Pepkor and was completed on 8 September 2026.
The portfolio comprises approximately 280,000 m² of gross lettable area. It includes the Ackermans and PEP distribution centres in Hammarsdale, KwaZulu-Natal, and the PEP distribution centre in Kuilsriver in the Western Cape.
“Capital allocation discipline is what drove this transaction. The capital tied up in these three distribution centres does more for Pepkor in our core retail business than it does sitting in property. Partnering with IronOak releases the bulk of this capital while we retain a shareholding in the portfolio and secure long-term occupation of the facilities our stores depend on. IronOak brought long-term capital and a willingness to structure around our operational requirements. We look forward to a long and productive partnership,” said Shaun Barnard, head of asset management at Pepkor.
IronOak partners with businesses and property owners seeking to introduce long-term capital into industrial and logistics real estate. The platform enables counterparties to release capital from property ownership while continuing to use assets that are important to their operations and, where appropriate, retaining an ownership interest.
Beyond retail, IronOak will seek opportunities across sectors where businesses own industrial or logistics properties and want to release capital to fund growth or reinvest in their core operations.
“These properties help keep Pepkor’s retail operations moving. Through IronOak, we are bringing long-term capital to assets that businesses depend on, while giving property owners greater flexibility in how they fund their operations. This investment provides a substantial foundation from which to build further industrial and logistics property partnerships,” said Mesh Pillay, CEO of YW Capital.
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