JSE-listed Attacq today announced that Attacq Waterfall Investment Company (AWIC) will buy 20% undivided share of the leasehold rights and rental enterprises of the Mall of Africa from Att MOA 20 Proprietary Limited.
Post the transaction, AWIC will own 100% of the Mall of Africa.
AWIC is 70% held subsidiary of Attacq.
Att MOA 20 Proprietary Limited is beneficially held by Atterbury Property Holdings.
The purchase consideration for the Undivided Share is more than R1 billion, which equates to an initial forward yield of c.8.0% (based on estimated net operating income for the 12 months ending 30 June 2025, inclusive of asset and property management fees) and payable in cash.
“The acquisition is aligned with Attacq’s stated intention of investing into precincts which it owns and controls,” said Attacq in a statement.
“The Mall, which is eight years old and currently managed by Attacq, anchors Waterfall City and continues to perform strongly as one of the best performing super-regional malls in South Africa, benefiting from the continued densification of Waterfall City as AWIC rolls out its development pipeline of residential, logistics and collaboration hubs, as well as the densification of the greater Waterfall node in general.
“At 31 December 2023, the Mall’s compounded annual trading density growth over the past three years was 16.1%, whilst its rent to turnover ratio was healthy at 7.5%.”
The acquisition is subject to the fulfilment of the following conditions precedent:
Within 14 business days of the date of signature of the agreement:
- the Seller has procured the written consent of the mortgage bondholder to the release of
the Undivided Share from the applicable mortgage bond registered thereover; - written evidence that the written consent of the head landlord under the relevant notarial
lease to the cession and assignment of the Undivided Share by the Seller to AWIC has been
obtained; and - the Seller has furnished AWIC with documentary evidence to the effect that the head
landlord under the relevant notarial leases has signed all documents which are required
to register the transfer of the Undivided Share in the relevant deeds registry.
