Today Attacq (JSE: ATT) listed on the JSE’s Main Board becoming the 17th property company to list on the JSE in the past three years.
Attacq is a South African real estate fund with assets of R13.35 billion and a portfolio which includes Waterfall Business Estate in Midrand, Garden Route Mall in George, Eikestad Mall in Stellenbosch and Lynnwood Bridge in Pretoria. The company holds a 25% shareholding in Atterbury Property Holdings a private development company and a 32.5% shareholding in the Mauritius based Atterbury Africa Ltd, a property investment company focused on developing shopping centres on the African continent outside of South Africa. With a focus on capital growth rather than income, Attacq will be listing in the JSE’s real estate sector Estate and will not seek REIT status.
“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 the company’s prospects.” says Morné Wilken, CEO of Attacq. Before listing Attacq raised R800 million through an oversubscribed private placement.
“We’re very pleased to welcome Attacq on to the JSE. This is a much anticipated listing in a sector that has enjoyed good growth in the past years as Africa’s property development needs expand. It’s a sector that is well understood by both local and international investors,” says Zeona Jacobs, Director of Issuer and Investor Relations at the JSE. Other property listings for this year are Tower Property Fund this past July and GoGlobal Properties which listed in April.
The sector’s growth has been driven partly by the global search for predictable and growing income streams. The JSE’s real estate sector now boasts 46 listed property companies accounting for just over 4% of overall JSE market capitalisation. The listed property section has grown from R19 billion at the end of September 2003 to R177.2 billion at end of September 2013.
South Africa is ranked second in the world for raising capital through the local equity market according to the recently released World Economic Forum’s Global Competiveness Report for 2013-2014. In the latest report, the country moved up one place from last year’s ranking