Attacq, the real estate investment trust (Reit) listed on the JSE and at the forefront of developing Waterfall City in Gauteng, unveiled a new property project pipeline worth R2.75 billion on Tuesday. This capital is earmarked for its area surrounding the Mall of Africa over the next two years.
The forthcoming projects include a new 19-storey residential tower, further investments in data centre properties, a newly planned conference centre with an attached hotel, the Gateway East office building, as well as logistics properties.
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Read: Mall of Africa owner Attacq posts remarkable half-year results
The residential tower is part of Attacq’s second joint venture with private developer Tricolt and is included in the group’s “approved pipeline of developments.”
According to Attacq’s development executive, David Oosthuizen, the new project, dubbed Aspire Waterfall City, is expected to be made public in May.
“While we had originally aimed to commence development sooner, it is now anticipated to begin during the 2025 financial year.
“This will be the second tallest building in Waterfall City, and it will be the tallest residential structure in the area,” noted Oosthuizen.
Other projects in this pipeline include the second phase of the Vantage Data Centre at Waterfall and the first phase launch of Attacq’s long-awaited Waterfall Junction Logistic Hub in a 50/50 joint venture with Sanlam Properties.
Moreover, Attacq executives highlighted “potential new development opportunities” within Waterfall City, which include the convention centre and the Gateway East office building, encompassing 11,700m² and featuring ground-floor restaurants with direct access to the mega mall.
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Raj Nana, Attacq’s CFO, clarified that the R2.75 billion capex figure cited in the latest results reflects total investments from both the Reit and its joint-venture partners across various projects over the next two years.
“The Aspire Waterfall City initiative will see an investment of roughly R454 million, with Attacq retaining a 25% stake as a joint venture partner with Tricolt,” explained Nana.
Tricolt is already partnering with Attacq on the prominent Ellipse Waterfall development, which consists of four apartment towers and is nearing completion of its final phase. So far, they have recorded sales of over R1.6 billion from the overall Ellipse project.
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The R454m Aspire Waterfall high-rise apartment development planned by Attacq and Tricolt. Image: Supplied
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An impression of what the conference centre and hotel development at Waterfall City could look like. Image: Supplied
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The Gateway East office-focused development, envisioned at the main entrance to Waterfall City and Mall of Africa. Image: Supplied
Interestingly, Tricolt is also working with JSE-listed Growthpoint on another high-rise luxury apartment project in Sandton. The two companies recently announced achieving nearly R1 billion in sales for that endeavor.
Read:
Second tower launches at Olympus Sandton due to increased demand
Growthpoint and Tricolt partner for a new R2bn-plus Olympus Sandton high-rise
Attacq’s Waterfall City receives a R1.25bn boost for high-rise residential projects [Aug 2019]
Nana mentioned that Tricolt is handling the final phase of Ellipse Waterfall, where Attacq has a 20% stake in the last tower.
Oosthuizen noted that Aspire Waterfall, while taller, will also be situated next to Ellipse and will mirror its scale in terms of the number of apartments available (approximately 220).
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“This represents an exciting development phase for Waterfall City, as both the Aspire and Gateway East projects will seamlessly integrate with the Mall of Africa. This strategy aims to enhance our focus on the mall by introducing new dining options at the base of these new developments,” he stated.
Stronger demand
Jackie van Niekerk, CEO of Attacq, declared that the group has witnessed increased demand for space at Waterfall City across all major property sectors, including retail, commercial office, and logistics since the year began (post year-end). This positions it as one of South Africa’s swiftly developing property development nodes.
She noted that there seems to be positive momentum from the South African government of national unity regarding crucial reforms and “addressing the crises” impeding economic growth.
“We maintain a positive outlook for South Africa, motivating a renewed focus on Waterfall City and our local properties,” she added.
“We have divested from our investments in MAS plc and our “rest of Africa” assets, and in the medium term, we find the outlook favorably conducive for the narrative of SA Inc.”
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Jackie van Niekerk on leading Attacq and the Waterfall City mega-development
Commenting on Attacq, Evan Robins from Old Mutual Investment Group remarked that the Reit is in a significantly stronger position compared to previous financial years.
“The results were solid, even if some key performance indicators were less than exhilarating… The balance sheet has improved and been streamlined through the divestment from MAS, the direct sub-Saharan African investments, and the acquisition of minority stakes in the Mall of Africa.”
“The residential development at Waterfall City seems very promising,” said Robins.
“As more residential properties arise in the area, especially more upscale options, it benefits the Mall of Africa by attracting wealthier shoppers.
“It’s also advantageous for the entire precinct, as the area reinforces itself. From Attacq’s perspective, the significance of residential development in this context may surpass its standalone impact,” he concluded.
Listen to Nana discussing Attacq’s interim results on SAfm Market Update with Jimmy Moyaha:
You can also listen to this podcast on iono.fm here.
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