ATTACQ by Essential Business

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Property

Attacq is a leading capital growth company in the real estate sector, headquartered in South Africa with a diverse investment and development portfolio in its home market and further afield. sat down with MornĂŠ Wilken, the companyâ&#x20AC;&#x2122;s CEO, to talk international strategy and investment opportunities.

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ince Attacq was founded in 2005 in South Africa the company has consistently delivered capital growth to its investors through its geographically diverse portfolio of properties and investments. It has grown a diverse investment portfolio that includes landmark commercial and retail property investments and developments, in South Africa, sub-Saharan Africa and Europe. Attacq’s blended

investments in established and developing markets minimises risk, especially in pressured times. The company listed on the Johannesburg Stock Exchange (JSE) in 2013. “Attacq’s strategy is based on long-term sustainable capital growth, taking a long-term view, similar to the asset class we invest in,” says Wilken. “Attacq will continue to invest, develop and grow wisely as a sound listed real estate company with a strong

Graeme Page Consulting Engineers CC (GPCE) ...is a Johannesburg based firm of specialist heating, ventilation and air-conditioning (HVAC) Consulting Design Engineers. The heart of their expertise lies in the successful delivery of large commercial developments. Understanding the ever changing demands of commercial driven space is crucial. Their entire design process takes cognisance of this at each step, to provide the most flexible solution for the client. Full Scope Air Conditioning Design Inception Concept and Budgeting? Tender and Cast Suspension Construction Quality Control Close Out Fields of Expertise 2 and 4 Pipe Chilled Water Systems Rooftop Package Units DX Split Unit Solutions Close Control Installations (Data Centres) Mechanical Ventilation Solutions Smoke Extraction Solutions Kitchen Canopy Extraction Design The firms’ members, Graeme Page, Steven Barrett and George Arnold, and its key alliances have some 50 years’ experience in the industry, and have been involved with leading developers and professional team members on a number of prestigious projects, in all sectors. The firm’s project experience includes but is not limited to:

Retail Shopping Centres Corporate Offices Hotel and Leisure Industries High/Low Rise Luxury Accommodation Educational Facilities Health Care Industrial Developments

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CMY

Graeme Page Consulting Engineers (gpce) is a Johannesburg based firm of specialist heating, ventilation and air-conditioning (HVAC) Consulting Design Engineers servicing the built environment. The firm founded in 2002 specializes in retail, commercial, hotel, leisure, entertainment and residential projects with a special emphasize on personal client focused delivery. The business makes use of the latest design, CAD, and thermal modeling software to ensure each project is delivered a solution of the very highest quality with leading technical innovation. GPCE staff has more than 10 yearsâ&#x20AC;&#x2122; experience in the design and supervision of mechanical services for buildings in the private and public sectors. Projects range from the most complex corporate office environments and retail centres to hospitals, sports and leisure facilities and refurbishment projects.

We are proud to have been involved in The Mall of Africa project. Tel: +27 11 794 1907 Fax: +27 11 794 1201

Email: info@gpce.co.za Website: www.gpce.co.za 5

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investment and development pipeline. We pursue good business opportunities in South Africa, in developing as well as established markets.” Attacq acquired the development rights to Waterfall in 2008. This provides Attacq with a pipeline to develop South Africa’s new lifestyle city over the next 10-15 years in Gauteng

– the economic powerhouse of southern Africa. The decision to invest outside of South Africa was taken to diversify Attacq’s portfolio, to create a currency hedge and take advantage of the growth opportunities in foreign markets while capitalising on the stability of developed markets. Wilken is proud of Attacq’s international

“Since Attacq was founded in 2005 in South Africa the company has consistently delivered capital growth to its investors through its geographically diverse portfolio of properties and investments.

Adams & Adams ...is an internationally recognised and leading African law firm that specialises in providing intellectual property and commercial services. With primary office locations in South Africa and branches and associate offices in a number of African countries, our firm’s leadership position is reflected in the groundbreaking work we do, the valuable client relationships we have and the quality of our professionals. Our more than 200 professionals specialise in various legal and technical disciplines in intellectual property law, commercial and property law, and litigation. We proudly represent many of the world’s largest corporations and organisations, as well as small to medium-sized companies and our 70 partners are established pathfinders and thought leaders in their respective practice areas. Our Intellectual Property law practices work with clients around the globe and across many industries to protect, enforce and commercialise their intellectual property including trademarks, patents, copyright and designs. Likewise, our general commercial legal services practices boast competent and powerful teams that are purposed to represent clients in expertise areas such as commercial litigation, property services, public procurement, banking and finance, mergers and acquisitions, tax, franchising, personal injury, arbitration and dispute resolution, and technology, among others.

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HELPING YOU BUILD YOUR AFRICAN SUCCESS STORY

AFRICA’S TIME WAITS FOR NO ONE – and that’s why 240 Fortune 500 companies and the continent’s big league developers like Attacq count on the IP, commercial, property and litigation muscle of our legal professionals. Our professional teams work and think at a ‘systems level’ of business and law, so you can be sure that your triumphant African success story is authored by a team of dedicated and exceptional specialists.

For assistance contact property@ adamsadams.com

ATTORNEYS

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expansion progress: “We have invested in Europe with a strategic investment of around 40% in MAS plc (a company listed on both the JSE and Luxembourg Stock Exchange),

two retail centres in Cyprus and a portfolio of retail properties in Serbia. Attacq has also invested in Africa, predominately through joint ventures and in retail centres located in Ghana, Zambia and Nigeria. The investments are paying off, and these investments are around 24% of our gross assets and almost 40% of our net equity.” Wilken was in charge during the company’s listing on the JSE, and he admits that it wasn’t an entirely painless process. “There were two main challenges when we went to market. Firstly, from inception the company grew quite quickly and in the first few years of operating we had to restructure the organisation, to support our business focus. Secondly by operating as a capital growth company, we

Brian Heineberg and Associates ...was formed in February 1997 by Brian Heineberg, having worked as a professional quantity surveyor in private practice since 1979. Some eighteen years after the establishment of Brian Heineberg & Associates, the practice has grown from a single employee to a staff complement of twenty-five. WHY US Our practice has handled amongst the largest, fastest and most difficult projects in the country. In order to do this we need to have a constant, tight control of the budget, at all times. We need to balance the scales of the budget with that of the practical and aesthetic needs of the Client and designer. To do this two fundamentals are essential: A close and co-operative working relationship with all other members of the professional team and the Client body. A hardworking team. Our office will work relentlessly, 24 hours a day, 7 days a week to ensure that we are at all times up to date with our commitments. We have ample back-up resources within the office to supplement where necessary. COMPLIANCE Our practice is a fully paid up member of the Association of South African Quantity Surveyors, South African Property Owners Association and Green Building Council of South Africa. The majority of our quantity surveying staff are Greenstar SA accredited professionals.

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www.bhberg.co.za Tel: +27 (0)11 784 0870 | bhberg@bhberg.co.za 4th Floor, 4 Stan Road, Sandown, Sandton

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have been pioneers in the industry, as most of our peers are income-producing real estate companies, also known as ‘REITS’. Attacq is driven by a creative approach to local and international real estate developments and investments which create sustainable growth for all Attacq stakeholders. This consistent focus on long-term capital growth differentiates Attacq from other JSE-listed property entities that focus on the generation and regular distribution of income to shareholders,” explains Wilken. Attacq’s real estate assets are therefore not designed for short-term profits but to

“The decision to invest outside of South Africa was taken to diversify Attacq’s portfolio, to create a currency hedge and take advantage of the growth opportunities in foreign markets while capitalising on the stability of developed markets.

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generate quality rental income and sustainable capital growth well into the future – a fact seen clearly in the scale and nature of the projects they choose to undertake. Like many companies, Attacq has gone through some tough financial times in recent years. Wilken joined the company in 2008, as the global financial crisis struck and businesses all over the world saw losses and slowdowns. While the business environment was very challenging, the unique climate also held its own opportunities: “It actually played to our advantage. We had to get a number of approvals for many of our development rights and there wasn’t a lot of objection to getting our rights through.” When asked about how the industry is changing, Wilken suggested that another slowdown might be imminent, despite the recent signs of possible improvements in the economy. “In challenging macroeconomic circumstances, we have produced a good set of results,” states Wilken. Attacq reported R27.6 billion in total assets at its annual results on the 30th June 2016, with nearly R19.5 billion of completed property in South Africa alone. Of these around 58% are retail properties, including the recently completed Mall of Africa in Waterfall City, and 33% are office space, with the remaining 9%

WSP | Parsons Brinckerhoff ...one of the world’s leading engineering professional services consulting firms. We bring together our 36,500 staff, based in more than 500 offices, across 40 countries to provide engineering and multidisciplinary services in a vast array of industry sectors, with a focus on technical excellence and client service. Our expertise covers land remediation to urban planning, engineering iconic buildings to designing sustainable transport networks, and developing the energy sources of the future to enabling new ways of extracting essential minerals. Operating from South Africa, our specialist skills backed by a global reach make us the provider of choice – whatever the challenge might be. Africa’s entrepreneurial success means we can offer clients all the benefits of a world-wide organisation. These include our global reach, shared knowledge and close local relationships. We employ more than 1,000 people in Africa, all of whom are: Passionate about problem solving Transforming the built environment Restoring the natural environment Service focused Through continuous improvement of customer services, we strive to be the outstanding supplier of integrated services. We are Africa’s leading provider of sustainability and a Gold Founding Member of the Green Building Council of SA.

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AWARD WINNING BUILDINGS

BROUGHT TO YOU BY WSP | PARSONS BRINCKERHOFF

WSP | Parsons Brinckerhoff is proud to have been involved in several award winning buildings over the years. From Attacqâ&#x20AC;&#x2122;s new, LEED Gold rated Novartis South Africa head office, winner at the Construction World Best Project Awards 2016, to the the Fulton Award-winning Fairscape Precinct in Gaborone, our Building Services and Structures teams bring our clients the best possible engineering solutions for their property projects. We offer world-class expertise in all aspects of property engineering design, from energy efficient solutions to innovative structural and faĂ§ade design, through to niche speciality in Electronic Solutions; Heating, Ventilation and Air Conditioning (HVAC); Fire Engineering and Sustainability Consulting. We bring passion and expertise to every project, from office buildings to warehouses. Our portfolio of iconic building projects show how our multi-disciplinary approach helps our clients make a difference to the way we build.

36 500

500

EMPLOYEES

OFFICES

COUNTRIES

Learn more about this and other projects on www.wsp-pb.co.za

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Boogertman + Partners Architects

split between light industrial and hotel properties.

Balanced portfolio

The company has always gained a competitive edge through its diversification strategy, which mitigates local market fluctuations. As Wilken explains it: “We invest in various markets to mitigate the downside risk of economic slowdown. When there’s a slowdown in one economy you might get an advantage in another.”

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Investing internationally presents its own challenges. Each market has inherent risks, which need to be considered and well managed to avoid losses. Attacq responded by developing systems that take local conditions into account. “If I can use South Africa as an example, what works in Johannesburg is not necessarily going to work in Cape Town or Durban. By being on the ground and, I mean, really living in a place, you gain valuable

...was established in 1982 with offices in Johannesburg, Pretoria, Cape Town, Durban and Kenya. The practice engages in projects throughout Africa by continually embracing social, economic and functional challenges through “Excellence by Design”. Having gained national and international acclaim, Boogertman + Partners has successfully completed projects in Egypt and Sudan, has ongoing projects in Botswana, Kenya, South Africa and Zambia, as well as numerous design proposals in the Ivory Coast, Ghana, Mauritius, Mozambique, Namibia, Rwanda, Uganda and Zimbabwe. Boogertman + Partners are driven by a dynamic team of directors who share a vision for contextually responsible and innovative design, with a dedicated approach to the building process, from project inception to execution. The team is complemented by talented professionals – urban designers, interior designers, architects and technicians, as well as an in-house graphic design and marketing team and the support of administrative staff. Armed with this intrinsic nexus of skills, Boogertman + Partners encourages a collaborative process in which the client brief and dialogue are realised by a creative vision, shaped by geographic location and environmental characteristics, moulded by economic and social conditions and refined through technical and sustainable advances – resulting in a holistic project solution. As gold founder members of the Green Building Council of South Africa, Boogertman + Partners fully support the environmentally sustainable transformation of the built environment. With increasing concerns over global warming and the pressures of sprawling urbanism, Boogertman + Partners, through our integrated design approach, is committed to creating and developing sustainable environments that are low energy consuming, efficient and flexible and encourage an optimally healthy lifestyle.

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Human Centred Design. CITY LODGE WATERFALL CITY Midrand, South Africa

Architecture | Interior Design Urban Design | Graphic Design w w w.booger tmanandpar tners.com #d es ign in ga b et t er t o morrow

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“Attacq’s real estate assets are therefore not designed for shortterm profits but to generate quality rental income and sustainable capital growth well into the future – a fact seen clearly in the scale and nature of the projects they choose to undertake.

experience over a period of time. It is for that reason that Attacq prefers to choose partners with proven local operating track records rather than trying to do it all ourselves.”

New city, new opportunity

In recent years, Attacq’s largest project has been the development of Gauteng’s new lifestyle city, Waterfall City, with the Mall of Africa as the retail jewel in the new destination node’s crown. The 131,000 square metre Mall is the largest single phase shopping mall built anywhere in Africa, and Wilken says that it’s had a strong opening with more than 123,000

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visitors on opening day and a strong visitor flow since then, exceeding expectations. “Over 1.1 million people visit the mall every month. Of course, there’s been some small operational teething issues, but nothing that we haven’t been able to sort out.” The scale of the Mall of Africa brings significant shoppers’ choice acting as a draw card, which in turn makes it attractive for leading local and international retail brands to secure space in the mall. The size caters for significant footfall, making it attractive for tenants. The development of the Mall

of Africa was done based on sound prior demographic studies, investigations and forecasts of an acceptable yield. The Mall of Africa has created more than 4,500 permanent jobs, employed over 7,500 people during its construction and has over 300 retailers. In addition to the 133,000 square metres of retail space a further 25,000 square metres is planned for the first expansion. Attacq has secured a total of 1.8 million square metres of development space across the entire site, of which 409,000 square metres is already completed as of 30th June 2016.

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PLANTECH

Building and operating shopping centres has been good business in South Africa for a number of years, with something of a boom taking place. The country now has a greater square footage of retail space than any country in continental Europe and the 7th largest total retail area in the world, with more than 23 million square metres of shopping centre. Despite this, many parts of the country still don’t have access to adequate shopping facilities. The super-regional Mall of Africa is intended to address this problem for Gauteng and the surrounding area, where more than 100,000 households are still short of retail access. While there are concerns in some economic circles that the South African retail industry is over-supplied given the current economic climate, many dismiss this as an underestimation of South Africa’s mall culture. Given the security concerns that surround the country’s urban areas, many choose to visit malls like the Mall of Africa to relax and enjoy themselves as well as to shop. Although it may seem that South Africa’s industry has grown too fast and become too big to survive in the current economic climate, this is only a short-term view. Given the multi-year timeframe involved in constructing a major shopping mall, many developers will begin projects at the top of the business

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cycle, even if they finally open them during a downturn, as the mall will then be established and fully operational by the time the economy picks up again. In addition, extensive research done prior to 2008 showed that Pretoria and Midrand were developing to the south and Johannesburg was extending its footprint to the north, with Waterfall right in the centre and a prime location for an infill development. Being conveniently located and easily accessible made it the perfect location for Attacq to invest in a number of larger development projects, including the Mall of Africa shopping centre, Waterfall City and Waterfall.

Live, work and play

Waterfall is being developed as Gauteng’s newest lifestyle city with Waterfall City as its central business district (CBD). The interest and uptake is already very promising. “We have had a number of international corporate brands like PwC, Novartis, and Premier Foods that have consolidated in Waterfall City. The new Waterfall City CBD is developed as a lifestyle urban space where people can enjoy a balanced lifestyle in a pleasant urban development setting that takes both people’s needs and that of the environment into account. Waterfall is a superior mixed use city that includes retail, commercial, light industrial and

...expertise covers the full spectrum of electrical, mechanical and electronic engineering services. The Electrical department specialises in distribution substation, power line, cable feeders and township electrical reticulation systems for both regional and municipal networks. Plantech Associates have extensive experience in all building services for commercial and specialised buildings. Building services including air conditioning, ventilation, transportation, steam, gas, fire detection and control, security and other installations for offices, shopping centres, airports, laboratories, factories, universities and many more. Electrical Consulting Engineering Mechanical Consulting Engineering Electronic Consulting Engineering By being personally involved and totally committed, the best service is rendered to clients at all times www.plantech.co.za

“Attacq reported R27.6 billion in total assets at its annual results on the 30th June 2016, with nearly R19.5 billion of completed property in South Africa alone. residential properties and is conveniently located on the N1 highway between Pretoria and Johannesburg. “We believe in being a good corporate citizen and investing

Property

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Plantech Associates is a specialist Electrical and Mechanical Engineering Services company with extensive experience in the following ﬁelds:

• Electrical building services such as small power and ligh�ng, UPS and generator emergency power systems, power factor correc�on and lightning protec�on • Mechanical building services such as air condi�oning, ven�la�on, li�s and escalators • Experience in GBCSA (Green building Council of South Africa) and LEED (US Green building Council) building projects • Security, ﬁre, BMS, access control and communica�on systems • Refrigera�on, cold storage hospital and laboratory services • Construc�on and project management • Solar Photovoltaic (PV) systems PO Box 146, PERSEQUOR PARK, 0020 • Township re�cula�on

www.plantech.co.za beyond our bottom-line” states Wilken. In recent years, Attacq has teamed up with Growth Point to invest in Property Point, a programme supporting enterprise and supplier development (“ESD”). “We believe that supporting ESD is a key way in which we can create meaningful change in South Africa. Through this programme, we have already sponsored 17 SMEs”. The objective is to collaborate to maximise meaningful transformation in the property sector, by nurturing and growing small businesses. The first intake ran over two years which culminated with a graduation ceremony on the 23rd November 2016. The programme aims to develop the SMEs to be supplier ready, and includes a variety of trades, ranging from painting to

17 Quin�n Brand Street, PERSEQUOR PARK Tel: +27 (0)12 349 2253 | Fax: +27 (0)12 349 2390 E-mail: plantech@plantech.co.za

air conditioning and landscaping contractors. Attacq has also formed a partnership with LaunchLab, an incubator entrepreneur-training company, to promote business investment and innovation in the retail sector. Wilken explains: “We want to look at potential initiatives in the retail space. We give participating entrepreneurs seed money to look at opportunities, and when one is feasible and we want to roll it out, we as Attacq can participate. It’s an opportunity for people to put their entrepreneurial ideas into practice and it gives us a potential business opportunity in the future.” Wilken is confident that his company is maintaining its

momentum. “Our big focus is on the Waterfall rollout. Operationally we want to make sure everything is sound and working optimally.” Wilken also mentions that on the international front he is quite excited about MAS’s revised strategy for expansion into eastern and central Europe. “This is mainly driven by the new joint venture with the ex-CEO of New European Property Investments, Martin Slabbert, and his team,” explains Wilken.

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Att House, 2nd Floor, Maxwell Office Park, Magwa Crescent West, Waterfall City T: +27 87 845 1136 F: +27 86 242 9247

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