DEVELOPER and logistics firm, Newlyn Group, has concluded an R5-billion integrated financing solution with Absa CIB, which will power its national development pipeline and enable growth at scale, the company said in a joint media statement.
According to the South African ports logistics and infrastructure developer, the finance solution will fund Newlyn Group’s delivery of infrastructure assets across key logistics corridors in South Africa.
The group says it is committed to a development pipeline of strategically located, high-performance facilities at South Africa’s key coastal and inland logistics hubs.
Newlyn has developed plans for a state-of-the-art back-of-port manganese storage and handling facility at Coega in the Eastern Cape, a facility it has positioned as ‘complementary’ to Transnet’s planned 16 Mtpa manganese terminal at the Port of Ngqura. Transnet frequently mentions this ‘Magnet’ terminal, a plan which has been on the cards since 2014.
The company says its bespoke bulk cargo terminal developments are engineered to raise efficiency across the bulk logistics sector and are set to transform the country’s port logistics landscape.
Rajendra Balmakhun, founder and CEO of Newlyn Group, comments, “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, at the same time, supporting our ongoing balance sheet strength.”
Somaya Joshua, managing executive: real estate at Absa Corporate and Investment Banking, says, “This innovative transaction with Newlyn Group reflects our ability to structure complex solutions and demonstrates the strength of Absa CIB’s partnerships with key clients across the real estate sector.”
Since 1996, Newlyn Group has established a track record of proven investment and development expertise in South Africa’s specialist port logistics sector. Its national portfolio of large-scale logistics parks and properties spans 32 assets and more than 1.3 million sqm of gross lettable area (GLA) and includes a 2.0 million sqm landbank as well as 200,000 sqm of developments currently under construction.
In 2024, the company officially launched the Newlyn PX Bayhead Rail Terminal, an R3.4-billion multimodal hub adjacent to the Port of Durban, designed to facilitate the movement of sea, rail, and road cargo.
Balmakhun says, “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.”
