Landmark R2.8 billion transaction set to additional de-leverage Attacq’s steadiness sheet, optimise the Group’s capital construction and fund the rollout of Waterfall Metropolis
Attacq Restricted (“Attacq”), the JSE-listed REIT creating Waterfall Metropolis, introduced that it has entered right into a non-binding time period sheet with the Authorities Workers Pension Fund (“GEPF”), represented by the Public Funding Company (“PIC”). The GEPF will purchase a 30% curiosity within the abnormal shares and shareholder loans held in Attacq Waterfall Funding Firm (“AWIC”), an entirely owned subsidiary of Attacq and the proprietor of Waterfall Metropolis.
The funding will probably be made by way of issuing new AWIC fairness, buying AWIC shareholder fairness and shareholder loans from Attacq, and the extension of a further pro-rata shareholder mortgage by the GEPF. The conclusion of the transaction will end in GEPF proudly owning 30% of AWIC for an estimated money consideration of R2.8 billion.
Commenting on the announcement, Attacq Chief Govt Officer, Jackie van Niekerk stated, “We’re happy by this transformative transaction for Attacq, to introduce the GEPF as a long-term strategic funding companion to AWIC. Working intently alongside our new companions, we stay dedicated to fulfilling our strategic goal of making sustainable worth for all stakeholders.”
The transaction aligns with Attacq’s technique to optimise the Group capital construction by creating a major de-leveraged steadiness sheet with the capability to fund the World-class, Waterfall Metropolis improvement pipeline with no extra capital required from shareholders within the medium time period. Moreover, Attacq will profit from quite a few price financial savings and efficiencies, whereas retaining its necessary REIT standing. Attacq will retain full management of AWIC by way of its majority stake and can proceed to offer asset administration and administration companies to AWIC at market-related charges.
Attacq Chief Funding Officer, Peter de Villiers stated: “Attracting this vital funding from the GEPF is a significant affirmation of the standard of Waterfall Metropolis, certainly one of South Africa’s fastest-growing work and life-style precincts. We will now expedite the continuing rollout of developments inside Waterfall Metropolis as a part of our precinct technique which focuses on making a protected, good and sustainable retail expertise, collaboration and logistics hubs.”
The proceeds will probably be utilised to optimise the capital construction of each AWIC and Attacq by de-leveraging the Group’s steadiness sheet, enhancing the liquidity place of Attacq, and enhancing funding capability.
“We’re really enthusiastic about this milestone transaction for Attacq and Waterfall Metropolis. It additionally offers the GEPF with a singular funding alternative within the co-ownership of a world-class metropolis. As soon as applied, Attacq will see its gearing scale back from 37.2% to c. 24.0% on a pro-forma foundation offering the steadiness sheet to develop Waterfall Metropolis. Attacq’s capital construction can even be optimised leading to a lowered price of capital thereby enhancing returns for Attacq’s shareholders. It’s a win-win for all stakeholders.” says Attacq Chief Monetary Officer, Raj Nana.
The transaction is topic to the fulfilment of sure circumstances. Because the transaction is assessed as a Class 1 transaction when it comes to the JSE Listings Necessities, majority shareholder approval is required.