R2.7 billion boost for one of South Africa’s fastest growing cities

Attacq has benefitted from the sale of a significant stake in its prime development, Waterfall City, by settling billions in debt.

In its financial results for the year ended 30 June 2024, Attacq highlighted several key transactions throughout the last year. 

Most notably, in July 2023, Attacq, Attacq Waterfall Investment Company (AWIC), and the Government Employee Pension Fund were interested in a transaction where the GEPF would acquire a 30% shareholding in AWIC for R2.7 billion. 

This would see the GEPF acquiring new shares and existing issued shares from Attacq. Attacq would also dispose of 30% of its existing shareholder loan. 

The final condition precedent was fulfilled on 18 September 2023, with Attacq shareholders approving the deal at the annual general meeting. 

“The audit and risk committee (ARC) reviewed and interrogated the impact of the transaction, including the transactive reserve and noncontrolling interest reserve as a result of it, and concluded that the amount thereof was fairly stated and in accordance with the accounting policy.”

For Attacq, as part of the implementation of the GEPF transaction, the group settled R2.9 billion in interest-bearing borrowing and refinanced a further R4.1 billion in interest-bearing borrowings at reduced margins.

Waterfall City is a mixed-use development in northern Johannesburg. It features South Africa’s busiest mall, Mall of Africa, residential estates, apartment blocks, office parks, and industrial buildings.

The area is constantly expanding, with developments under construction and an approved pipeline totalling 43,766 square meters of gross lettable area (GLA) at Waterfall City, at a total cost of R1.7 billion.

On top of Mall of Africa and Waterfall City, the group also owns other properties, such as Lynnwood Bridge and the Garden Route Mall.

As per other interesting transactions, the group also increased its shareholding in Waterfall Junction to 50.0%, expanding its logistic development area to 313,791 sqm. 

The group also acquired the final 20% stake in Mall of Africa for R1.07 billion. 

It also disposed of its 6.5% investment in property investors in MAS P.L.C (MAS) for a total consideration of R773.1 million. 

The group also entered into a binding sale agreement to dispose of its Rest of Africa retail investments. Along with Hyprop, the group plans to sell its assets in Nigeria and Ghana for roughly R1 billion. 

Financials 

Distributable income per share (DIPS) increased by 19.9% to 86.2 cents

Earnings per share also grew by 83.% to 135.3 cents.

Full-year dividend growth of 19.0% to 69.0 cents per share,

The group’s total comprehensive profit for the year, which includes fair value losses and foreign exchange losses from operations outside South Africa, was R1.01 billion, a 53% increase.

The year’s total comprehensive profit follows a “net profit from property operations, positive fair value adjustments to investment property offset by the negative fair value of the investment in MAS and Rest of Africa.”

That said, headline earnings per share did decrease by 10% from 81.5 in FY23 to 72.7 in FY24.

The group’s key financial results can be found below:

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