Attacq Reveals R2.75bn Expansion Project for Waterfall City Including 19-Storey Residential Tower

Attacq, the real estate investment trust (Reit) listed on the JSE and spearheading the development of Waterfall City in Gauteng, announced a fresh pipeline of property projects valued at R2.75 billion on Tuesday. This investment is set for its precinct surrounding the Mall of Africa over the next two years.

The upcoming developments include a new 19-storey residential tower, additional investments in data centre properties, a new conference centre with an accompanying hotel, the Gateway East office building, as well as logistics properties.

Read: Mall of Africa owner Attacq reports impressive half-year results

The residential tower is part of Attacq’s second joint venture with private developer Tricolt and falls within the group’s “approved pipeline of developments.”

Attacq’s development executive, David Oosthuizen, stated that the new project, named Aspire Waterfall City, is anticipated to be launched to the market in May.

“While we had aimed to initiate the development sooner, it’s now expected to commence during the 2025 financial year.

“This will stand as the second tallest building in Waterfall City, and it will be the tallest residential building in the area,” Oosthuizen noted.

Additional projects in this pipeline encompass the second phase of the Vantage Data Centre at Waterfall and the launch of the first phase of Attacq’s long-anticipated Waterfall Junction Logistic Hub in a 50/50 joint venture with Sanlam Properties.

Furthermore, Attacq executives highlighted “potential new development opportunities” within Waterfall City, including the convention centre and the Gateway East office building, which spans 11,700m² and will feature restaurants on the ground floor with direct access to the mega mall.

Read:
Microsoft’s substantial R25.8bn investment in South Africa
Attacq’s bold R20bn expansion of the Waterfall City hub [Nov 2024]
Vantage Data Centers proposes R15bn Joburg campus at Attacq’s Waterfall mega-development [Oct 2021]

According to Raj Nana, Attacq’s CFO, the R2.75 billion capex figure mentioned in the latest results reflects the total investment from both the Reit and its joint-venture partners across various projects over the next two years.

“The Aspire Waterfall City project will see an investment of approximately R454 million, with Attacq holding a 25% stake as a joint venture partner with Tricolt,” Nana explained.

Tricolt is already collaborating with Attacq on the notable Ellipse Waterfall development, which consists of four apartment towers and is nearing the completion of its final phase. To date, they have recorded over R1.6 billion in sales from the overall Ellipse development.

Interestingly, Tricolt has also been engaged by JSE-listed Growthpoint for another high-rise luxury apartment project in Sandton. The two groups recently announced reaching nearly R1 billion in sales for that development.

Read:
Second tower launches at Olympus Sandton amid 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 added that Tricolt is leading the final phase of Ellipse Waterfall, where Attacq holds a 20% stake in the last tower.

Oosthuizen noted that Aspire Waterfall, while taller, will be located adjacent to Ellipse and will be similar in scale regarding the number of apartments available (approximately 220).

“This represents an exciting development period for Waterfall City, as both the Aspire and Gateway East projects will integrate with the Mall of Africa. This strategy will enable us to enhance our focus on the mall by introducing new dining options at the base of these new establishments,” he said.

Stronger demand

Jackie van Niekerk, CEO of Attacq, stated that the group has experienced heightened demand for space at Waterfall City across all major property sectors, including retail, commercial office, and logistics since the start of the year (post year-end). This positions it as one of South Africa’s most rapidly growing property development nodes.

She mentioned that there appears to be positive momentum from the South African government of national unity regarding essential reforms and “addressing the crises” hindering economic growth.

“We have a positive outlook for South Africa, which has prompted 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 believe the outlook is favorable for the story of SA Inc.”

Listen/read:
Lower interest rates: Simon Brown discusses renting vs buying a home
Will property stocks rally on government unity optimism?
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 much stronger position than in previous financial years.

“The results were solid, even if some key performance indicators were less than exciting… The balance sheet has been improved and cleaned up through the disposal of MAS, the direct sub-Saharan African investments, and the buyout of minority stakes in the Mall of Africa.”

“The residential development at Waterfall City appears very promising,” said Robins.

“As more residential properties emerge in the area, particularly more upscale options, it benefits the Mall of Africa, attracting wealthier shoppers.

“It is also advantageous for the entire zone, as the precinct reinforces itself. From Attacq’s viewpoint, the significance of residential development in this context may outweigh its standalone impact,” he added.

Listen to Nana discussing Attacq’s interim results on SAfm Market Update with Jimmy Moyaha:

https://iframe.iono.fm/e/1535835?layout=modern” width=”100%” height=”170″ frameborder=”0″ data-gtm-yt-inspected-29=”true” data-gtm-yt-inspected-1201283_33=”true” data-mce-fragment=”1

You can also listen to this podcast on iono.fm here.

Follow Moneyweb’s comprehensive finance and business news on WhatsApp here.