South African property group Attacq has earmarked R20-billion to additional develop its flagship Waterfall Metropolis business and logistics hub on the outskirts of Johannesburg.
“I’ve received a companion that’s received deep pockets,” CEO Jackie van Niekerk mentioned in an interview, referring to a current cope with the Authorities Staff Pension Fund.
The GEPF is the most important pension fund on the continent and owns a 30% stake within the Attacq subsidiary which runs the 5 400-acre improvement. That deal that helped the agency pay down debt and decrease its gearing ratio.
The fund mentioned Attacq would want to comply with the inventory alternate’s processes for any capital elevating wants. “Ought to that state of affairs come up, the GEPF (by the Public Funding Company), would think about any potential request as one of many shareholders of the REIT,” a spokesman mentioned.
GEPF has backed comparable developments up to now, together with the V&A Waterfront in Cape City. Valued at greater than R23-billion, that web site is amongst Africa’s most dear property belongings and its backers have pledged to speculate as much as R4.5-billion over the subsequent three years.
Waterfall Metropolis contains workplaces buildings for the likes of PwC, Deloitte and Accenture, a non-public hospital, luxurious properties, inns, and leisure services. Attacq’s portfolio within the precinct, which additionally contains procuring and information centres and logistics parks, is valued in extra of R13-billion, in line with the agency.
‘Greatest focus’
“Waterfall, by and enormous, is our greatest focus,” Van Niekerk mentioned. The Johannesburg-listed actual property funding belief has pursuits in shops, logistics hubs and inns in a minimum of three South African provinces.
Its plans for the largely privately developed and managed settlement come as considerations in regards to the potential of debt-laden municipalities to offer providers and decaying public infrastructure proceed to push firms and residents to hunt backup options for primary items equivalent to water and energy.
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Attacq has already constructed some infrastructure, together with roads, wanted to assist Waterfall Metropolis and surrounding areas and makes use of solar energy in key buildings. It doesn’t instantly plan to concern additional debt to finance upcoming development. — Prinesha Naidoo and Loni Prinsloo, with Arijit Ghosh, (c) 2024 Bloomberg LP
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