Johannesburg - Listed capital growth property company Attacq plans to increase its exposure to developed and emerging markets and slow down its prominence in South Africa.
Morne Wilken, the chief executive of Attacq, yesterday confirmed that the decision was influenced by the economic and political uncertainty in South Africa.
But he said it had also been giving the message since listing that it would always look to diversify to manage Attacq’s downside risk and there were currently a lot more offshore opportunities.
“Africa is under pressure, but our focus here (South Africa) is to roll out Waterfall. We will have negative growth in South Africa, but there will be more momentum going forward,” Wilken said.
Attacq has a total asset value of R27.6 billion, with South African assets increasing to 66 percent of total assets in the year to June from 58 percent in the previous year. Developed market assets rose to 15 percent from 13 percent, while its emerging markets assets remained static at 6 percent.
Developments as a percentage of total assets have declined to 13 percent from 23 percent in the previous year, largely because of the completion of the Mall of Africa at Waterfall.
Three assets
Wilken said Attacq’s exposure to developed markets was predominantly in three assets.
This was its 48 percent shareholding in the two malls in Cyprus, 41 percent shareholding in listed MAS Real Estate and 20 percent in Nova Eventis, a 100 000m² shopping centre in Leipzig in Germany.
Wilken said MAS had traditionally only focused on Germany, Switzerland and the UK, but had now expanded its focus to include the higher growth markets in central and eastern Europe through Prime Kapital, in which MAS had a 40 percent shareholding.
He said MAS remained a strategic investment for Attacq, but it did not have any intention to control the company.
As part of its emerging markets strategy, Attacq holds a 25 percent shareholding in Atterbury Serbia.
Attacq also has investments in five operational malls across Africa. Wilken said that the African market was volatile at the moment, even in South Africa.
He confirmed Attacq would look to exit its investments in Africa if the price was right.
Wilken said Waterfall remained the jewel in the Attacq crown and was a catalyst for regional growth.
Attacq reported a 15.3 percent growth in adjusted net asset value a share to R21.89 for the year to June.
Attacq’s total asset value grew by 18.6 percent to R27.6bn at the end of June from R23.3bn a year ago.
Shares in Attacq dropped by 0.29 percent on the JSE yesterday to close at R17.30.
BUSINESS REPORT