DailySun
Attacq, the real estate investment trust (Reit) listed on the JSE and leading the development of Waterfall City in Gauteng, unveiled a new pipeline of property projects worth R2.75 billion on Tuesday. This investment is earmarked for its vicinity surrounding the Mall of Africa over the next two years.
The forthcoming developments feature a new 19-storey residential tower, further investments in data centre properties, a new conference centre alongside a hotel, the Gateway East office building, and various logistics properties.
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Read: Mall of Africa owner Attacq reports impressive half-year results
The residential tower is part of Attacq’s second collaboration with private developer Tricolt and falls within the group’s “approved pipeline of developments.”
Attacq’s development executive, David Oosthuizen, mentioned that the new project, named Aspire Waterfall City, is expected to be launched to the market in May.
“Although we had initially planned to kick off the development sooner, it’s now anticipated to begin during the fiscal year 2025.
“This will be the second tallest building in Waterfall City and will claim the title of the tallest residential structure in the area,” noted Oosthuizen.
Further projects in this pipeline include the second phase of the Vantage Data Centre at Waterfall and the launch of the first phase of Attacq’s highly awaited Waterfall Junction Logistic Hub in a 50/50 joint venture with Sanlam Properties.
Additionally, Attacq executives pointed out “potential new development opportunities” within Waterfall City, which encompass the convention centre and the Gateway East office building, spanning 11,700m² and featuring ground-floor restaurants with direct access to the mega mall.
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Raj Nana, Attacq’s CFO, indicated that the R2.75 billion capex figure mentioned in the latest results represents the aggregate investment from both the Reit and its joint-venture partners across multiple projects over the next two years.
“The Aspire Waterfall City project will involve an investment of around R454 million, with Attacq holding a 25% stake as a joint venture partner with Tricolt,” explained Nana.
Tricolt is currently working with Attacq on the significant Ellipse Waterfall development, comprising four apartment towers and nearing the completion of its final phase. To date, they have achieved over R1.6 billion in sales from the entire Ellipse development.
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The R454m Aspire Waterfall high-rise apartment development planned by Attacq and Tricolt. Image: Supplied
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An impression of what the conference centre and hotel development at Waterfall City could look like. Image: Supplied
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The Gateway East office-focused development, which is envisioned at the main entrance to Waterfall City and Mall of Africa. Image: Supplied
Interestingly, Tricolt has also partnered with JSE-listed Growthpoint for another high-rise luxury apartment project in Sandton. The two companies recently announced nearing R1 billion in sales for that development.
Read:
Second tower launches at Olympus Sandton amid increased demand
Growthpoint and Tricolt collaborate for a new R2bn-plus Olympus Sandton high-rise
Attacq’s Waterfall City receives a R1.25bn boost for high-rise residential projects [Aug 2019]
Nana added that Tricolt is spearheading the final phase of Ellipse Waterfall, where Attacq holds a 20% stake in the final tower.
Oosthuizen highlighted that while Aspire Waterfall will be taller, it will be situated next to Ellipse and will be comparable in scale regarding the number of available apartments (approximately 220).
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“This signifies an exhilarating development period for Waterfall City, as both the Aspire and Gateway East projects will integrate seamlessly with the Mall of Africa. This strategy will enhance our emphasis on the mall by introducing new dining options at the bases of these new establishments,” he stated.
Stronger demand
Jackie van Niekerk, CEO of Attacq, remarked that the organization has seen increased demand for space at Waterfall City across all major property sectors, including retail, commercial office, and logistics since the beginning of the year (post year-end). This positions it as one of South Africa’s fastest-growing property development areas.
She noted that there appears to be promising momentum from the South African government of national unity concerning vital reforms and “addressing the crises” hindering economic growth.
“We maintain a positive outlook for South Africa, which has led to a renewed focus on Waterfall City and our local properties,” she added.
“We have divested from our investments in MAS plc and our “rest of Africa” assets, and in the medium term, we anticipate a favorable outlook for the narrative of SA Inc.”
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Jackie van Niekerk on leading Attacq and the Waterfall City mega-development
Commenting on Attacq, Evan Robins from Old Mutual Investment Group noted that the Reit is in a significantly stronger position than in previous financial years.
“The results were solid, even if some key performance indicators were less than thrilling… The balance sheet has been improved and streamlined through the sale of MAS, the direct sub-Saharan African investments, and the acquisition of minority stakes in the Mall of Africa.”
“The residential development at Waterfall City looks highly promising,” remarked Robins.
“As additional residential properties emerge in the area, particularly more upscale options, it attracts wealthier shoppers to the Mall of Africa.
“This is also beneficial for the overall precinct, as it reinforces the area. From Attacq’s perspective, the significance of residential development in this context may outweigh its individual impact,” he added.
Listen to Nana discussing Attacq’s interim results on SAfm Market Update with Jimmy Moyaha:
You can also listen to this podcast on iono.fm here.
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