Attacq bets big with R20bn to expand Waterfall City hub

Flagship development backed by GEPF partnership aims to redefine JHB’s commercial landscape.

South African property group Attacq has earmarked R20 billion ($1.1 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.

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The GEPF is the biggest pension fund on the continent and owns a 30% stake in the Attacq subsidiary which runs the 2 200 hectare (8.5 square miles) development. That deal helped the firm pay down debt and lower its gearing ratio.

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The fund said Attacq would need to follow the stock exchange’s processes for any capital-raising needs. “Should that situation arise, the GEPF (through the Public Investment Corporation), would consider any potential request as one of the shareholders of the REIT,” a spokesperson said.

GEPF has backed similar developments in the past, including the V&A Waterfront in Cape Town. Valued at more than R23 billion, that site is among Africa’s most valuable property assets and its backers have pledged to invest up to R4.5 billion over the next three years.

Waterfall City comprises offices buildings for the likes of PwC, Deloitte and Accenture, a private hospital, luxury homes, hotels and leisure facilities. Attacq’s portfolio in the precinct, which also includes shopping and data centers and logistics parks, is valued in excess of R13 billion, according to the firm.

“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.

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Read/listen: GEPF invests R2.8bn in Attacq’s Waterfall City

Its plans for the largely privately-developed and managed settlement come as concerns about the ability of debt-laden municipalities to provide services and decaying public infrastructure continue to push companies and residents to seek back-up solutions for basic goods such as water and power.

Attacq has already built some infrastructure, including roads, needed to support Waterfall City and surrounding areas and uses solar power in key buildings. It doesn’t immediately plan to issue further debt to finance upcoming construction.

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