South African corporate advisory and investment firm YW Capital and RMB have completed a R2.25 billion logistics property transaction involving Pepkor through IronOak, YW Capital’s industrial and logistics real estate investment platform.

The transaction, completed on September 8, 2026, saw IronOak acquire a 65% stake in Badger Properties, which owns three distribution centres supporting Pepkor’s PEP and Ackermans retail operations across Southern Africa.

Pepkor retains the remaining 35% stake in Badger Properties, while the transaction releases approximately R2 billion in capital for the retailer.

IronOak was developed through a partnership between YW Capital and RMB. RMB provided seed equity alongside YW Capital as well as financing for the fund, establishing a platform that the partners plan to expand beyond the initial Pepkor portfolio.

The acquired portfolio comprises approximately 280,000 square metres of gross lettable area. It includes the Ackermans and PEP distribution centres in Hammarsdale, KwaZulu-Natal, and a PEP distribution centre in Kuilsriver in the Western Cape.

Pepkor will continue to occupy the properties under long-term arrangements, allowing the retailer to release capital from the real estate while retaining an ownership interest.

“The capital tied up in these three distribution centres does more for Pepkor in our core retail business than it does sitting in property,” said Shaun Barnard, Head of Asset Management at Pepkor.

“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,” he added.

IronOak is focused on investing in industrial and logistics properties where corporate owners are seeking to release capital while continuing to use assets important to their operations.

The platform plans to pursue similar transactions beyond the retail sector, targeting companies that own industrial or logistics real estate and want to redeploy capital into their core businesses or growth initiatives.

“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.”

Pillay said the Pepkor portfolio provides a foundation for IronOak to pursue additional industrial and logistics property investments.

RMB is participating as both an investment and financing partner, providing capital, financing and transaction structuring capabilities.

“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 also acted as transaction advisers to IronOak.