Coinciding with the launch of JSE-listed capital growth property fund Attacq’s refreshed brand, which includes a new logo in red and grey, the company on Tuesday announced that it would accelerate the internalisation of the Waterfall development management function to enable Attacq to take full control of the strategic planning, marketing and roll-out of the Waterfall developments.

Attacq would drive the development of Waterfall City and its world-class infrastructure as the African headquarter destination for years to come, noted Attacq CEO Morné Wilken at a media briefing in Waterfall City, on Tuesday, adding that the company would continue to develop the city over the next 10 to 15 years.

“Attacq and Atterbury have agreed to amend the existing development management agreement to terminate the exclusivity of Atterbury’s appointment as development manager to Waterfall effective July 1,” explained Wilken.

In anticipation of the expiry of the exclusivity period, Attacq had assembled its own development team, which included Attacq head of developments Pete Mackenzie, who had more than 25 years’ experience in the property development and investment sector.
 
As part of the internalisation of the development function, Attacq had also appointed Morné Whitehead, who was previously with Atterbury. Whitehead had been involved with Waterfall for the past five years and had been instrumental in Waterfall’s infrastructure planning and implementation, and had managed a number of Waterfall’s commercial property developments. Existing developments under Whitehead’s management would be taken over by Attacq with no further fees being payable to Atterbury on these developments, Wilken said.

“From a practical point of view, the completion of certain developments in the ground will remain the responsibility of Atterbury so [it] will continue to earn the remaining development fees in respect of these developments,” he added.

As part of the transaction, Attacq had also sold its 10% remaining shareholding in Atterbury back to the company.

In addition to the benefits of taking full control of Waterfall’s development management, Attacq will also effectively earn fees from its property developments.

VIBRANT BRAND
Attacq’s new “modern and vibrant” logo was supported by a recognisable icon element to identify and differentiate Attacq both in the real estate segment and the investment world, said Wilken, adding that the company’s refreshed brand “denoted confidence in our future sustainability and is akin to the investment leadership position Attacq has carved for itself as a successful listed capital growth fund”.
 
Wilken said that, as a capital growth fund, Attacq differentiated itself from its real estate peers. He noted that the company’s relatively new, quality property portfolio, including its stake in the recently launched Mall of Africa, as well as its offshore assets, which are now in excess of 24% of gross assets, are bearing fruit for investors.
 
“Our vision is to create sustainable capital growth for shareholders and to become the premier property fund in South Africa. Hence, to effectively communicate this with the market, we have created a powerful new brand for Attacq that aligns with our vision,” he said. 

NEW TRANSACTIONS 
The brand milestone coincided with significant strategic strides taken by the business, which included Attacq concluding a 20:80 joint venture transaction with JSE-listed specialist industrial real estate investment trust Equites in relation to eight completed industrial properties, at Waterfall, valued at R728-million.

The transaction forged a strategic partnership between Equites and Attacq for the purpose of jointly pursuing opportunities in the industrial property sector in and outside South Africa, Wilken said, believing that this could result in a “close strategic alliance” and “potential synergies” with the company.

The parties would be able to pursue and unlock certain greenfield developments in South Africa, which was consistent with the Attacq group’s value proposition of developing properties as part of its strategy of being a capital growth fund to earn development profits.

Attacq and Sanlam Properties on Monday also announced a 20:80 joint venture property transaction for further light industrial commercial and retail development in Waterfall. The JV had acquired 28 ha of Waterfall land from Attacq and an additional adjacent 100 ha from the Mia family, securing a total of 128 ha of usable land on the eastern side of the N1 freeway and south of the Allandale interchange.
 
Attacq, having elected to increase its shareholding in the 14 ha retail development portion to 50%, would manage the development. Of the available land, 114 ha would be used for light industrial commercial developments, which equated to a buildable area of 570 000 m². The balance of 14 ha would be developed for retail purposes.
 
Extensive demographic and feasibility studies had been undertaken and fully supported the proposed retail development to be done on the 14 ha of retail land in the near future, Wilken said. The retail development, which was still unnamed, would potentially comprise a 15 000 m² convenience or strip mall combination. 

While Wilken maintained that Attacq focused on all asset classes within the property portfolio, including retail, industrial and office classes, he believed it was a coincidence that two transactions focused on light industrial developments.