Capital growth player Attacq’s much-talked-about Mall of Africa, at 131,000m² the largest single-phase shopping centre yet to be built from scratch in SA, is more than 90% let and on track to open its doors at Waterfall City in Midrand in April next year.
The R4.8bn mall will be Attacq’s biggest single asset on completion. It will anchor the huge 323ha mixed-use Waterfall precinct taking shape along the N1 near Midrand, north of Johannesburg. About 26% of the total 1.83-million square metres at Waterfall — including offices, retail, hotel and warehouse space — has already been developed or is under construction.
Attacq CEO Morne Wilken said yesterday at the release of the company’s annual results for the year ending June the opening of Mall of Africa would be a “game-changer” as it would put Waterfall on the map.
“Besides introducing an exceptional world-class retail experience that will leave shoppers spoilt for choice, Mall of Africa will also be the catalyst that drives the roll-out of Waterfall over the next 10-15 years.”
Mr Wilken was confident the super-regional mall would succeed despite talk of SA already being overshopped amid mounting pressure on consumer spending. “We believe the mall’s central location and extensive retail and leisure offering will see it dominate the catchment area between Sandton and Centurion,” Mr Wilken said.
He said more than 90% of the space had been pre-let with international tenants including H&M, Cotton On and Forever 21 set to open flagship stores. Other international brands include Forever New, River Island, Mango, Tommy Hilfiger and Versace. Local tenants include The Foschini Group, Mr Price, Truworths, Woolworths, Edgars, Checkers and Game, he said.
Mr Wilken conceded it had become more difficult to fill new shopping centres with tenants. He said Mall of Africa was likely to be the last super-regional mall to be built in SA for many years to come.
Attacq’s R23.3bn property portfolio includes Garden Route Mall in George, Mooiriver Mall in Potchefstroom and Newtown Junction in Johannesburg.
The company also has an interest in Brooklyn Mall in Pretoria, four malls in Ghana, two in Zambia and one in Namibia.
The management recently sold the Mall of Mauritius and used the proceeds to buy stakes in two malls in Cyprus as part of its strategy to increase exposure to euro-based assets.
Attacq owns a 45.3% stake in JSE-listed MAS Real Estate, which owns properties in the UK, Germany and Switzerland.
About 19% of Attacq’s total portfolio in terms of value is located outside of SA.
Unlike most other JSE property listings, Attacq does not pay a dividend. The company yesterday posted 17.9% growth in adjusted net asset value per share for the year to June 30. Net rental income in the income generating part of Attacq’s portfolio increased by 47.6% to R954.1m over the same time.
Since listing on the JSE in October 2013, Attacq’s portfolio has nearly doubled from R12.77bn to R23.3bn.
MMI Holdings head of listed property Nesi Chetty said Attacq was one of the group’s top property stock picks.
He expects Attacq to grow net asset value by a compounded 19% over the next three years as the Mall of Africa and other Waterfall developments come on stream.
source – http://www.eprop.co.za/commercial-property-news/item/19226-mall-of-africa-at-waterfall-city-in-midrand-is-more-than-90-let.html