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Ports logistics developer Newlyn Group has secured a R5bn financing package from Absa Corporate and Investment Banking (CIB), providing fresh capital to accelerate the rollout of logistics infrastructure along South Africa’s key freight corridors as demand grows for more efficient port and supply chain capacity.The funding comes as private developers play an increasingly prominent role in expanding South Africa’s logistics infrastructure, stepping into a market where persistent congestion at ports and freight corridors has heightened demand for modern warehousing, distribution facilities and cargo-handling capacity.Absa CIB (Dorothy Kgosi) The funding gives Newlyn additional financial muscle to accelerate its development pipeline while preserving balance sheet flexibility.The transaction comes as industrial property continues to outperform other commercial real estate sectors, with investors increasingly backing logistics assets on the strength of resilient occupier demand and long-term growth prospects.“We are pleased to announce that Absa CIB has developed a bespoke real estate solution at favourable terms for Newlyn Group, unlocking liquidity to enable our growth at scale while supporting our ongoing balance sheet strength,” said founder and CEO Rajendra Balmakhun.Read: As SA banks shop in East Africa, Moody’s says Absa’s latest move is solidThe funding will finance logistics parks, warehouses and bulk cargo facilities across Newlyn’s national development pipeline, giving the privately owned developer additional firepower to expand along the country’s key coastal ports and inland freight corridors.Absa CIB managing executive for real estate Somaya Joshua said the deal demonstrates the bank’s ability to structure funding solutions for large-scale property and infrastructure developments.The group, which was founded in 1996, owns 32 logistics assets with more than 1.3-million square metres of gross lettable area, alongside a 2-million-square-metre strategic landbank and 200,000 m² of developments under construction.The developer has focused on logistics hubs serving South Africa’s coastal ports and inland freight corridors, where growing demand for modern warehousing, distribution facilities and specialised bulk cargo infrastructure has created opportunities for private investment.Its pipeline includes purpose-built bulk cargo terminal developments designed to improve cargo handling efficiency and reduce constraints across the country’s ports network.Balmakhun said the funding will enable Newlyn to continue expanding infrastructure that supports its customers and the broader economy.“By combining deep industry insight with responsible, solution-driven development, and harnessing the power of key partnerships, Newlyn Group will continue to create tailored infrastructure that supports the long-term commercial success of our partners and of South Africa,” he said.Newlyn partners with logistics, supply chain and fast-moving consumer goods (FMCG) businesses to develop efficient storage and distribution facilities positioned near key coastal and inland logistics hubs.The transaction comes as Absa ups the ante in its CIB franchise, a big money spinner for banks.Absa has also strengthened its CIB team as it seeks to grow market share in corporate and investment banking.The group recruited Zaid Moola from Standard Bank to head its CIB business.South Africa’s logistics sector is undergoing the steepest reforms in a generation, with the private sector expected to play a prominent role in the ports and rail sector. The reforms are opening up lending opportunities for banks. Read: ZAID MOOLA: Private sector poised to accelerate growth in Africa
