The Government Employees Pension Fund Acquires 30% Interest In Attacq Waterfall Investment Company
The Government Employees Pension Fund Acquires 30% Interest In Attacq Waterfall Investment Company. Attacq, Attacq Waterfall Investment Company (AWIC) and the Government Employees Pension Fund (GEPF) , represented by the Public Investment Corporation (SOC) Limited , have concluded a non-binding term sheet in respect of the proposed acquisition by the GEPF of 30% of the ordinary shares and shareholderloans in AWIC for an estimated cash consideration of R2.5 billion and the injection of a further R300 million into AWIC as a shareholder loan.
AWIC is a wholly owned subsidiary of Attacq, holding Attacq’s completed real estate portfolio and development and leasehold rights in Waterfall City (including developments under construction and leasehold land). Waterfall City represents an exceptional diversified investment and development opportunity, offering a “work, play, live” lifestyle within a smart, safe, sustainable environment.
If implemented, the acquisition will be transformative in furthering Attacq’s strategic objectives, which include introducing a long-term investment partner to AWIC, thereby securing funding for its ongoing Waterfall City development rollout; optimising AWIC and the Attacq Group’s capital structure by improving debt metrics and investment capacity; and enhancing the liquidity position of the Attacq Group. Attacq estimates that the proceeds of the Proposed Transaction, on implementation, will result in a reduction in the Attacq Group’s gearing from 37.2% at 30 June 2022 to c. 24.0% on a pro forma basis.
Should the acquisition be implemented, Attacq will retain control of AWIC with a majority shareholding of 70%, with the GEPF holding a minority shareholding of 30%. Attacq will continue to provide asset management and administration services to AWIC at market-related fees.
