Waterfall City to get R20 billion development boost

South African listed property group Attacq has allocated R20 billion to further develop its flagship Waterfall City commercial and logistics hub on the outskirts of Johannesburg.

"I've got a partner that's got deep pockets," Chief Executive Officer Jackie van Niekerk said in an interview, referring to a recent deal with the Government Employees Pension Fund (GEPF).

The GEPF, the largest pension fund on the continent, owns a 30% stake in the Attacq subsidiary managing the 2,200-hectare development. This deal has helped Attacq reduce its debt and lower its gearing ratio.

The fund mentioned that Attacq would need to adhere to stock exchange processes for any capital requirements. "Should that situation arise, the GEPF — through the Public Investment Corp. — would consider any potential request as one of the shareholders of the REIT," a spokesperson said, referring to a real estate investment trust.

GEPF has supported similar projects in the past, including the V&A Waterfront in Cape Town. Valued at over R23 billion, this site is one of Africa's most valuable property assets, with backers pledging to invest up to R4.5 billion over the next three years.

Waterfall City includes office buildings for companies like PwC, Deloitte, and Accenture, a private hospital, luxury homes, hotels, and leisure facilities. Attacq's portfolio in the area, which also features shopping centers, data centers, and logistics parks, is valued at over R13 billion, according to the company.

"Waterfall, by and large, is our biggest focus," Van Niekerk said. The Johannesburg-listed real estate investment trust has interests in retail outlets, logistics hubs, and hotels in at least three South African provinces.

Attacq's plans for the largely privately developed and managed settlement come amid concerns about the ability of debt-laden municipalities to provide services and the deterioration of public infrastructure, prompting companies and residents to seek alternative solutions for basic necessities like water and power.

Attacq has already constructed some infrastructure, including roads, to support Waterfall City and surrounding areas and uses solar power in key buildings. The company does not plan to issue further debt to finance upcoming construction at this time.