RMH eyes property with Atterbury stake
RMB Holdings (RMH) has acquired a 25% stake in developer Atterbury as part of an attempt to diversify into property, write Alistair Anderson and Joan Muller.
RMH CEO Herman Bosman said he intended to gain exposure to property worth about R15bn over the next few years and might possibly list a separate property fund.
“We felt that RMH was lacking in two areas. One was asset management, and the other was property-developing and investing. So, this deal with Atterbury lets us make a start in the property markets of SA.
“By buying into Atterbury, we will be exposed to diverse property assets, with a focus on the traditional retail, office and industrial sectors of property,” Mr Bosman said.
RMH owns a 34% stake in banking group, FirstRand.
The value of the Atterbury acquisition has not been disclosed.
Atterbury developed the Mall of Africa and has stakes in various other malls across SA including the R1.4bn mixed-use Newtown Junction in the Johannesburg central business district. It also has interests in shopping centres in Germany, Serbia, Cyprus, Ghana, Zambia and Nigeria.
Atterbury is the first acquisition in RMH’s property strategy, although more deals are expected in the future.
INVESTMENT group RMB Holdings (RMH) has ambitions to become a significant player in South African real estate, saying its acquisition of a 25.01% interest in developer Atterbury was its first step in a plan to gain exposure to a multibillion-rand property portfolio.
RMH CEO Herman Bosman said he intended to gain exposure to property worth about R15bn over the next few years and might possibly list a separate property fund.
“We felt that RMH was lacking in two areas. One was asset management, and the other was property developing and investing. So this deal with Atterbury lets us make a start in the property markets of SA.
“By buying into Atterbury, we will be exposed to diverse property assets, with a focus on the traditional retail, office and industrial sectors of property.”
RMH owns a 34% stake in banking group FirstRand.
The Atterbury deal is the first acquisition that forms part of RMH’s new property strategy, but more deals are expected in the future.
Atterbury developed the recently opened 131,000m² Mall of Africa, which has been living up to its hype, with more than 100,000 people visiting the shopping centre since trading began last Thursday.
Atterbury also has stakes in various other malls across SA including the R1.4bn mixed-use Newtown Junction in the Johannesburg central business district as well as interests in shopping centres in Germany, Serbia, Cyprus, Ghana, Zambia and Nigeria.
The value of the Atterbury acquisition has not been
The Atterbury deal is the first acquisition that forms part of RMH’s new property strategy but more are expected
disclosed. Management said yesterday that RMH would follow a phased approach to acquire its various property investments.
RMH investment executive Voyt Krzychylkiewicz said RMH was also planning to launch a specialist property business.
This may focus on storage assets, student housing and other growing sub-sectors of property. FirstRand, through Rand Merchant Bank (RMB), was previously exposed to the property development sector through RMB Properties, which was renamed Eris Property Group in 2008.
In 2012, RMB sold its stake in Eris to MMI.
RMH’s new property initiative will provide funding to entrepreneur-led businesses with proven track records in managing and building physical property portfolios.
The focus will be on office, retail, and industrial property developments, mostly in established and larger areas of SA.
Grindrod Asset Management chief investment officer Ian Anderson said RMH’s move into property was not a surprise.
“Globally, investors have been on the hunt for institutional quality property, so it’s not surprising that it’s happening in SA now.
“This is one of the reasons why cap rates on high-quality assets have been falling all over the world — excess demand from investors wanting the relative safety of a long lease, strong covenants and well-located property,” he said.