South African corporate advisory and investment firm YW Capital and RMB have announced the completion of a R2.25 billion Pepkor logistics property transaction through IronOak, YW Capital’s real estate investment platform focused on industrial and logistics property.
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, giving the partners funding certainty through the transaction and a foundation from which to grow the platform beyond the Pepkor portfolio.
As its cornerstone investment, IronOak acquired a 65% shareholding in Badger Properties, the company whose portfolio comprises three distribution centres supporting PEP and Ackermans’ retail operations across Southern Africa. Pepkor retains the remaining 35% shareholding, while the transaction releases approximately R2 billion in capital to the retailer. The transaction was completed on 8 September 2026.
Three strategically important logistics properties
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.
The properties form part of the logistics infrastructure supporting PEP and Ackermans’ retail operations across Southern Africa.
“Capital allocation discipline is what drove this transaction,” said Shaun Barnard, Head of Asset Management at Pepkor..
“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.”
Building the IronOak platform
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,” said Mesh Pillay, CEO of YW Capital..
“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.”
RMB supports IronOak as an investment and financing partner
RMB’s involvement combines investment capital, financing and structuring capability in support of IronOak and its ability to pursue further investments.
“Building a scalable real estate platform requires the right partner, structure and conviction. RMB’s role was to support IronOak with investment capital, financing and structuring capability, creating a platform that can grow over time while giving Pepkor greater flexibility to unlock capital from operationally important assets,” said Keenan Jacobs, Senior Transactor at RMB.
YW Capital and RMB acted as transaction advisers to IronOak.
The parties thanked Pepkor, the lenders and the professional teams involved in completing the transaction.
