Africa-Press – South-Africa. ATTACQ, the South African retail, office and industrial real estate investment trust, through its subsidiary Attacq Waterfall Investment Company (Awic), has conditionally agreed to dispose of a 50 percent share of its leasehold rights and rental enterprises within the Waterfall Logistics Hub to Equites Property Fund.
The companies said yesterday that the deal was valued at R444 million and was with effect from September 1.
The two Logistics Hub properties consist of Amrod and Massbuild distribution centres as well as 56 723m² of undeveloped land to be co-developed by Attacq and Equites, with Cotton On as a tenant.
Awic would continue to hold the remaining 50 percent interest in the disposal assets.
Attacq said the disposal was in line with its stated intention of reducing its debt levels and improving its interest cover ratio, while retaining 50 percent of the disposal assets.
“This transaction, combined with the previously communicated asset disposals, will contribute to a further de-gearing of the Attacq balance sheet, and in addition substantiate Attacq’s ability to transact at the carrying value of its quality assets,” it said.
It said with this transaction and the proceeds generated by Attacq’s disposals of its 50 percent interest in the Deloitte building, shares in MAS Real Estate and 2 Eglin, Attacq’s gearing ratio of 50.4 percent at December 31 last year would reduce to 43.4 percent.
Awic would continue to manage the disposal assets. Equites said the deal helped to create further scale in its highquality logistics portfolio, with stable and predictable rental growth profiles, while enhancing capital and income growth in the medium to long term.
Equites would fund the transaction from available debt facilities. Equites’ loan-to-value ratio would increase from 31.2 to 32.7 percent on September 1. |
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