Attacq sells stake in two industrial properties to Equites

JSE-listed landlord Attacq, which owns 80% of Mall of Africa, has agreed to sell 50% of the leasehold rights and rental enterprises of two of its industrial properties to Equites.

Equites will buy an undivided half-share of the leasehold rights and rental enterprises of the Amrod and Massbuild distribution centres and 56,723m² of undeveloped land.

This land will be jointly developed by Attacq and Equites, with retailer Cotton On as a tenant, within the Waterfall Logistics Hub in Midrand.

Equites will acquire the assets for R444.5m and Attacq Waterfall Investment Company, a wholly owned subsidiary of Attacq, will continue to hold the remaining 50% interest in the disposal assets. 

“The transaction is aligned with our indented plan to optimise our capital structure whilst retaining 50% of the disposed assets. It also substantiates our ability to transact at our book value,” Attacq CEO Jackie van Niekerk said.

Attacq continued to attract quality light-industrial tenants to its Waterfall Logistics Hub, van Niekerk said.

The group has a further 275,923m² of light-industrial leasehold rights, providing it with an opportunity to increase that portfolio, and which, once developed, will complement its existing portfolio.

“The Waterfall City development pipeline continues to attract experienced joint-venture partners, such as Equites, who understand and value the unique investment opportunity in the Waterfall node,” van Niekerk said.  

Attacq plans to roll out 1-million square metres of multi-use and specialised developments over the next five to 10 years that will expand its asset base by about R20bn.

Equites, which has SA assets valued at R12bn and R7.4bn of assets in the UK, specialises in providing space to multinationals that are prepared to sign leases for 10, 15 and 20 years.

andersona@businesslive.co.za