JOHANNESBURG, May 4 (Reuters) - Equites Property Fund said on Monday it would not proceed with a plan to build a 1.3 billion rand ($69.59 million) warehouse for retailer Pepkor due to market disruptions resulting from the coronavirus pandemic.
“The board of directors of Equites has resolved that, despite its strong desire to partner with Pepkor in relation to the development, it would not be prudent at this stage to proceed with the development on the originally envisaged commercial terms,” it said in a statement.
The property firm added that it has nevertheless indicated to Pepkor that it would like to continue its constructive engagement with the retailer “with a view to possibly concluding a transaction once market conditions are more conducive.”
Pepkor was not immediately available for comment.
In January Equites announced that it had been appointed by Pepkor to develop a 122,734 square metre logistics facility on land situated in Hammarsdale, KwaZulu-Natal province. ($1 = 18.6799 rand) (Reporting by Nqobile Dludla; Editing by Kirsten Donovan)