Attacq Waterfall Investment Company Proprietary Limited (AWIC), a subsidiary of Attacq, has entered into a conditional agreement to acquire the remaining 20% undivided share of leasehold rights and rental enterprises in the Mall of Africa.
This acquisition solidifies AWIC's ownership of the entire mall. The purchase consideration for the 20% undivided share amounts to R1.07 billion reflecting an initial forward yield of approximately 8.0%.
This consideration, payable in cash upon registration of the deed of cession and assignment, represents a discount of 7.7% compared to the independent external market valuation as of December 2023.
The agreement, reached with Att MOA 20, the current owner, will see AWIC owning 100% of the Mall of Africa upon implementation.
The seller, beneficially held by Atterbury Property Holdings and Atterbury Property, has agreed to the terms of the acquisition.
The rationale behind the acquisition aligns with Attacq's strategy of investing in precincts it owns and controls.
"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," the group said.
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 at 7.5%.
Shares in Attacq are up some 17% over the past year.
Comments