Investment holding company RMB Holdings (RMH) plans to create a property investment business and is acquiring a 25.01% interest in property group Atterbury.

The only remaining outstanding condition to the acquisition was approval by the competition authorities.

Atterbury would become RMH’s key development partner in its core portfolio that would target the more traditional and bigger parts of the South African property sector, principally office, retail and industrial property.

To supplement this core portfolio, the RMH property business would also include a specialist portfolio focusing on niche areas of the property sector.

The RMH property strategy would focus on owner-managed businesses, a broader value chain in property, an unlisted portfolio, a balance between net asset value and yield, as well as a lower concentration risk, as RMH planned to acquire stakes across multiple subsectors and geographies.

The group would follow a phased approach to acquiring its various property investments.

“Our new property investment strategy meets our stated objective of creating shareholder value and also further diversifies RMH’s earnings base, as we will invest across the breadth of the property value chain. In line with our history and ethos, we will focus on entrepreneurial and owner-managed businesses.

“The strategy will involve investing in physical property portfolios, as well as vertically integrated property companies, specifically with internal management teams that offer asset management, development management and property management skills. As a first step in the realisation of our strategy, we have found an excellent partner in Atterbury,” commented RMH CEO Herman Bosman.

Atterbury CEO Louis van der Watt added that Atterbury and RMH shared a similar culture and value set.

“Atterbury, as a relatively small company, is honoured to be reckoned among the RMH stable’s other prestigious investments. Having developed more than two-million square metres both inside and outside of South Africa, we are the ideal partner for RMH to capitalise on property opportunities,” he said.
 
Atterbury’s recent property developments include 300 000 m² of commercial, retail and industrial properties on the Waterfall land in Gauteng, including the flagship 130 000 m² Mall of Africa that opened last week.