The sweeping R4.5-billion Waterfall City development has the potential to become Gauteng’s new central business district (CBD), enabling large corporates to consolidate their Johannesburg bases while providing scope for future expansion, property developer Attacq CEO Morne Wilken argues.

The mixed-use development would be anchored by the flagship 120 000 m2 Mall of Africa, which was due for completion in early 2016 and was 76% prelet to a tenant base that included retail clothing outlets Zara, H&M, Forever 21 and River Island.

Noting that the development, which would take between 12 and 15 years to be fully completed, would have “excellent” access to the N1 highway, he said Waterfall offered the group a “huge” competitive edge and R3.5-billion in potential development profits.

“We are currently planning [to develop infrastructure] that will [expand] the development’s future potential, and we have the land available to do just that,” he commented, noting that, while some 199 016 m2 was currently under construction, the project had 1.7-million square metres of mixed-use-approved development bulk.

The development had already attracted the likes of advisory firm PwC, which had, in principle, agreed to establish its 40 000 m2, 25-storey headquarters in Waterfall City’s envisaged business district.

Wilken, meanwhile, downplayed the potential impact of the planned 22 km2 mixed-use Modderfontein City development, announced earlier this year by Hong Kong-listed property development group Shanghai Zendai, arguing that Attacq had already secured first-mover advantage.

In April, Shanghai Zendai outlined ambitious plans for the development of an R84-billion ‘city’ offering mixed land use on the sprawling Modderfontein property bought from South African explosives and chemicals company AECI last year for R1-billion.

The group planned to build a new ecofriendly and low-carbon urban district, which would encompass the functions of a conventional city, including finance, trade, logistics, commerce, exhibition, manufac-turing, education, healthcare and housing.

“We’re not concerned about the Modderfontein City development as we are ahead in terms of progress, and this development is still many years away. Shanghai Zendai also has lots of land rehabilitation to do [before construction can begin], and Waterfall City has much better road access,” he told Engineering News.

Announcing Attacq’s first full-year results since listing on the JSE in October 2013, Wilken reported that the group lifted the net asset value per share by 24% year-on-year to R14.77.

Total assets increased from R12.78-billion to R18.46-billion over the period, while the value of the property portfolio rose from R9.95-billion to R12.83-billion.

Of these, 16 properties were operational and 13 were under development.

In line with its increased property portfolio, Attacq posted a 55.4% jump in net rental income to R646-million and a 99.3% increase in operating profit to R507.2-million for the year under review.

Profit before tax increased by 44.2% to R1.23-billion.

Wilken added that Attacq had, over the year under review, delivered on all 14 transactions disclosed in its listing prospectus, which included internalising the asset manager, securing full ownership of the Brooklyn Bridge Office Park, in Pretoria, and buying out the minorities, in the Mooiriver Mall, the Eikestad Mall Precinct, Brooklyn Mall and the Garden Route Mall regional shopping centres.