Property group Attacq, which was previously known as Atterbury Investment Holdings, has announced plans to list on the real estate holdings and development sector of the main board of the JSE by mid-October.
Since its inception eight years ago, the firm has delivered an average compound annual return exceeding 20 percent.
Morne Wilken, Attacq CEO, said: "Listing Attacq will create a foundation to grow the business further. It enables Attacq to access capital efficiently, raise its profile and expand its investor base, all of which should enhance Attacq's prospects."
He added: "Attacq's focus on long-term sustainable capital growth distinguishes it from other JSE-listed property entities, such as REITs that predominantly focus on rental income distribution. When considering Attacq's listing, we assessed the investor benefits of various structures, including REITs. But, our established structure and business model of delivering sustainable long-term capital appreciation has proven successful and delivered excellent results to our investors. The timing of the listing also places Attacq in an ideal position to invest in excellent development opportunities, especially those at Waterfall Business Estate."
Attacq is anticipated to come to market on 14 October 2013.
Investment in the firm will be made available by private placement which aims to raise up to R800 million at a price per share determined by the book build, managed by Java Capital.
The private placement was expected to open on October 7 and close on October 9.
Besides raising equity, the private placement is also designed to increase the spread of shareholders for Attacq.
"For our existing over-the-counter shareholders who played such an important role in establishing Attacq's successful track record, their investment in Attacq shares will be tradable on the JSE from listing. This will ultimately enhance liquidity for our shareholders," said Wilken.
Attacq's assets comprise two focus areas: investments and developments. Its portfolio strategy is to hold 65 percent investments and 35 percent developments to optimise long-term sustainable capital growth enhance total returns to shareholders and mitigate risk.
Wilken explained: "Our investment in completed buildings provides stable and growing income and balance sheet strength to responsibly secure and fund high-growth opportunities within developments. In turn, the group's developments create a pipeline of high-quality investment properties that grows the investment base, as developments are retained rather than realised."
Attacq's asset base of R12.5 billion at March 2013 includes landmark commercial and retail assets and developments. Among its developments is the prime Waterfall Business Estate an infill development between Johannesburg and Pretoria.
Attacq's South African property investments are diversified across office, retail, mixed-use, industrial and hotel properties. It is also geographically diversified in three regions in South Africa, in the provinces of Gauteng, Western Cape and North West.
Its landmark local assets include Lynnwood Bridge, Brooklyn Bridge, Club 1 and Glenfair Boulevard, all in Pretoria, Woodmead North Office Park in Waterfall and Garden Route Mall in George.
Attacq also holds 81.95 percent of Attacq Retail Fund. This fund is invested in retail properties including Mooirivier Mall in Potchefstroom, Eikestad Mall in Stellenbosch and 25 percent of Brooklyn Mall in Pretoria.
Attacq benefits from an African portfolio which includes Bagatelle Mall of Mauritius and Bagatelle Offices. It also has an effective 32.5 percent stake in Atterbury Africa, in partnership with Hyprop Investments and Atterbury Property Holdings, which invests in retail centres and developments across sub-Saharan Africa.
It is also internationally diversified through MAS which has a primary listing on the EuroMTF market of the Luxembourg Stock Exchange and a secondary listing on the JSE AltX. MAS hold investments in Germany, Switzerland and the UK.
"Our long-term strategy is to achieve an optimal portfolio balance of 70 percent of our assets by value in South Africa, 20 percent in other countries on the African continent and 10 percent internationally outside Africa," said Wilken. "We are already making good progress on this objective and will continue to seek opportunities to further this goal as well as expand our development pipeline to grow long-term prospects."
Image: © Getty
Copyright is owned by Africa Outlook and/or Outlook Publishing. All rights reserved.