Attacq plans to become a Reit
HELPS TO DEVELOP, DELIVER AND GROW INCOME-GENERATING ASSETS
Company to pay maiden dividend of 73c per share in 2018.
Attacq Limited plans to convert into a real estate investment trust (Reit) after operating for three years as a capital growth company and not declaring dividends to shareholders.
Attacq, which is responsible for the Waterfall City development located between Midrand and Pretoria, announced yesterday it would convert into a Reit in July.
The conversion paves the way for the company to start distributing regular dividends to shareholders. Companies that have adopted the Reit structure are compelled to distribute more than 65% of their rental income from properties to shareholders as dividends.
South Africa adopted the Reit structure six years ago to bring local property companies in line with global tax and regulatory standards.
When Attacq listed on the JSE in October 2013, it didn’t adopt a Reit structure in order to retain capital in the business to fund the roll-out of its flagship project, Waterfall.
Attacq and property developer Atterbury purchased some rights from the Mia family in 2008 to develop prime land into Waterfall, a 340ha sprawling business and lifestyle node.
Approximately 600 000m² of office, retail and industrial space has been delivered by Attacq at Waterfall so far. About 1.2 million square metres of development bulk remains.
Attacq opened Mall of Africa in April 2016 at Waterfall.
The company said trading at the R5 billion shopping mall has exceeded expectations, with 1.2 million visitors recorded per month over the first year of trade.
A number of office and industrial properties will be delivered by Attacq.
These include a new 45 223m² head office for auditing and consulting firm PwC in 2018, a 42 500m² Gauteng office for accounting firm Deloitte by 2020 and eight industrial and logistics buildings in a joint venture with JSE-listed Equites Property Fund.
Attacq recently signed BMW Group as a tenant in a 32 000m² regional distribution centre that is set to open in 2018.
Upon completion in the next 10 to 15 years, Waterfall City will comprise about 1.9 million square metres of office, retail and light commercial properties.
Attacq’s CEO, Morné Wilken, said after the company has delivered a substantial part of Waterfall, it’s now appropriate for Attacq to reposition itself as a Reit.
“Attacq’s Waterfall development portfolio continues to be a strong differentiating factor as it enables Attacq to develop, deliver and grow income generating assets in support of its aim of delivering exceptional and sustainable capital and earnings growth to its shareholders,” said Wilken.
Attacq will pay its maiden dividend of 73 cents per share in 2018.
South Africa adopted the Reit structure six years ago to bring local property companies in line with global tax and regulatory standards.