Absa Corporate and Investment Banking has increased its financing facilities for the Newlyn Group to R5.1 billion to support the logistics infrastructure developer’s next phase of growth.
The transaction will provide Newlyn with a capital platform to expand its logistics property portfolio and development pipeline, Absa said.
Newlyn owns and manages 32 logistics assets comprising more than 1.3 million square metres of gross lettable area. The group also holds a 240 hectare landbank for future development.
Its development pipeline includes the Newlyn PX Bayhead Rail Terminal, adjacent to the Port of Durban, and planned back-of-port logistics infrastructure at Coega.
The developments are part of Newlyn’s strategy to build integrated logistics facilities connecting ports, rail infrastructure and road networks, Absa pointed out.
The projects align with South Africa’s freight logistics reforms and government’s objective of shifting more cargo from road to rail, the bank added.
Absa noted that growing container volumes on the road network have increased congestion and road deterioration, particularly along the Durban-Gauteng corridor, while increasing logistics costs, emissions and safety risks.
According to Absa, a more integrated freight system would allow road transport to continue handling first- and last-mile movements while rail carries a greater share of long-distance containerised freight.
The bank said the financing reflects confidence in South Africa’s logistics sector while government reforms create further opportunities for private capital to support infrastructure development.
