Property developers Attacq and Equites have reached a conditional agreement whereby Attacq will dispose of an undivided 50% share of the leasehold rights and rental enterprises within the Waterfall Logistics Hub.
The hub comprises two logistics properties – Amrod and Massbuild distribution centres – and nearly 57 000 m2 of undeveloped land to be co-developed by Attacq and Equites.
The R444-million transaction is expected to become effective September 1.
Attacq subsidiary Attacq Waterfall Investment Company will continue to hold a 50% interest in the assets and act as the property manager.
Attacq will use the proceeds to reduce its debt levels and improve its interest cover ratio.
Coupled with prior disposals, including a 50% interest in the Deloitte building, Attacq’s gearing ratio will reduce to 43.4%, from 50.4% as at December 31.
Adding to the value proposition for Equites is a ten-year lease agreement Attacq had entered into with clothing retailer Cotton On, in respect of a 20 796 m2 distribution centre, with an estimated start date of May 1, 2022, and yield on the total development cost of 8.1%.