South African property group Attacq Ltd. has announced a substantial 20 billion rand ($1.1 billion) investment to expand its flagship Waterfall City development on the outskirts of Johannesburg, Bloomberg reports.
The ambitious plan will further develop the already significant commercial and logistics hub.
The funding boost comes following a strategic partnership with the Government Employees Pension Fund (GEPF), Africa’s largest pension fund. GEPF now holds a 30% stake in the Attacq subsidiary overseeing the 2,200-hectare (8.5 square-mile) Waterfall City development. This investment has allowed Attacq to reduce debt and improve its financial standing.
While confirming its support for the expansion, GEPF emphasized that any future capital needs would need to follow stock exchange procedures. A spokesperson stated that the GEPF, through its investment arm, the Public Investment Corporation, would consider any such requests as part of its role as a shareholder in the REIT (Real Estate Investment Trust). GEPF’s involvement echoes its previous backing of major developments like Cape Town’s V&A Waterfront, highlighting its confidence in large-scale property projects.
Waterfall City currently boasts a diverse portfolio including office buildings occupied by major firms like PwC, Deloitte, and Accenture, along with a private hospital, luxury residences, hotels, leisure facilities, shopping centers, data centers, and logistics parks. Attacq values its existing portfolio within the precinct at over 13 billion rand.
This expansion comes amid growing concerns about the capacity of debt-burdened municipalities to provide essential services and the deterioration of public infrastructure. Attacq’s investment is seen as a response to these challenges, providing alternative solutions for water and power in the area. The company has already invested in crucial infrastructure, including roads, and utilizes solar power in several key buildings. Attacq does not currently intend to issue further debt to finance the upcoming construction phase.
