AT TA C Q
ATTACQ
Developing the
Hottest Property PRODUCTION: Timothy Reeder
Attacq stands alongside South Africa’s premier property companies and has been responsible for some of the major recent projects in the country. Of these, it is the iconic Waterfall City that continues to attract both plaudits and ongoing development, the leading light as its owner transitions to a REIT and begins to richly reward its initial investors.
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Attacq is billed as a premier property company for South Africa, an outfit that targets exceptional and sustainable growth through quality property developments. Attacq achieves this by
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investing in four key market sectors: Retail, Office, Industrial and Hotel, and has amassed a portfolio which numbers such landmark constructions as Lynnwood Bridge Precinct and Glenfair Boulevard in Pretoria,
Garden Route Mall in George and the MooiRivier Mall in Potchefstroom. A leading South African growth fund in the real estate sector, Attacq has a current property portfolio worth in excess of R200 billion.
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INDUSTRY FOCUS: PROPERTY
WATERFALL CITY Topping off Attacq’s comprehensive offering is the edifice which is often referred to as its very own ‘jewel in the crown’, the immense Waterfall City and Logistics Hub set between Pretoria and Johannesburg. Having acquired the development rights to Waterfall City in 2008, Attacq has never wavered in its quest to create a leading Central Business District (CBD) for Gauteng, and ensuring for itself in the process an enviable future development pipeline. “The Waterfall development consists of Waterfall City, an integrated city that works, alongside Waterfall Logistics Hub; this is Gauteng’s logistics hub of choice, and includes light industrial and warehousing,” the company explains. The vibrant modern city embraces new urban living with provisions for retail, offices, homes, dining, entertainment and more. “It is a truly connected hub, a fully-integrated lifestyle which offers a complete worklife package. “The design is inspired by the contemporary principles of walkable, energised, mixed-use environments to create a truly first-class city.” The development as a whole boasts 975,468 m² of remaining
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developable bulk, which is ungeared and of which 600,000 m² is already serviced and immediately available for commercial, residential and industrial developments. In recent months, the Waterfall team have completed on a total area of 92,456m² of leases for new offices and industrial space. Amidst an until now unparalleled blend of leisure and work offerings sharing the same space, the standout colossus is undauntedly the sprawling Mall of Africa. The largest single-phase shopping mall to be built in Africa, the
precinct spans 131,000 m2 and hosts more than 300 shops comprising a carefully selected retail mix to include both local and international brands. GREATEST MALL OF ALL With ownership split 80/20 between Attacq and Atterbury Property Developments respectively, Mall of Africa is “a visual, social and economic anchor” of Waterfall City, and forms the iconic heart of the innovative development. Of its importance, Louis van der Watt, CEO of Atterbury says: “In
ATTACQ
line with the Atterbury vision to create working, shopping and entertainment spaces for everyone to live to their full potential, the development of this breath-taking shopping and leisure destination introduces an unmissable, unmatched retail experience. “Mall of Africa’s exceptional scale, design, location and retail mix places it at the forefront of development.” Recognition was given from the outset, with Mall of Africa bringing home the coveted SASC Spectrum Award for best super-regional shopping mall shortly after opening in 2016. The site boasts an estimated completion value of more than R4.5billion, and hit the headlines when it welcomed more than 123,000 visitors on opening day to stores ranging right from Armani through to Zara. Its creators call Waterfall “a city developed on a scale beyond anything South Africa has known”. Along with the recognised local and international brands that now call the Mall of Africa home, a host of other global names have marked their first move in the country with new stores, with Helly Hansen, Asics, The Kooples and Soap Stories some of the most noteworthy. Mike Clampett, head of asset and property management at Attacq, explains that there is “a very good balance, close to equilibrium - there is space for everyone”, and testament to Mall of Africa’s success is its resilience to the continued threat of online retail. A very healthy 11% growth in turnover was announced in December 2017 from the same period in 2016, with a total revenue generated between R3.6bn and R3.8bn, as reported by Fin24. From a location point of view, Waterfall is perfectly positioned between Johannesburg, Sandton and Pretoria, which is guaranteed to appeal to the broadest range of consumers. “One of Waterfall’s biggest advantages is that it’s right in the centre of Gauteng,” summed up former Attacq CEO Morné Wilken at its opening.
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“Everything has developed around it and, given its central location, it makes it ideal for corporates to consolidate their offices. For example, if a company has offices in Johannesburg and Pretoria, Waterfall is perfectly situated to consolidate. We have brilliant access from the Allandale interchange.” REIT CONVERSION In May this year Attacq announced its decision to convert to a Real Estate Investment Trust (REIT), the rationale behind which was explained by Interim CEO Melt Hamman. “Our REIT conversion finalises our shift in focus from providing only capital growth to a focus on total return comprising sustainable income distributions as well as capital growth,” he told Engineering News. “We believe this strategy is a natural step given the progression in our
business since listing in 2013. “Our quality portfolio of South African income producing assets is underpinned by strong property fundamentals and with a gross asset base exceeding R28 billion as at 31 December 2017. We believe that Attacq will attract a broader investor base by converting to the widely understood REIT structure and by distributing earnings bi-annually.” This news also means that Attacq now intends to pay its maiden dividend towards the close of the year, with a projected payment of 73 cents per share to come, to see patient investors rewarded to the tune of R500m.
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Published by CMB Media Group Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU T. +44 (0) 20 8123 7859 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. Š CMB Media Group Ltd 2018
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ENTERPRISE AFRICA
SEPT EMBER 2018