PRETORIA – Attacq, the listed real estate investment trust (Reit), is planning to dispose of its non-core property assets to reduce its interest-bearing debt and roll out its development pipeline at Waterfall in Midrand.
Jackie van Niekerk, the chief operating officer of Attacq, said they planned to dispose of the Eglin Building in Sunninghill, which was PwC’s head office before it moved into new premises at Waterfall, and the Brooklyn Bridge Office Park in Pretoria.
Van Niekerk said both properties were held for sale after offers to acquire them did not materialise. “These are the types of assets we are recycling. The book value of those two assets is close to R800 million,” she said.
Melt Hamman, the chief executive of Attacq, said Attacq was a capital growth fund and from a regulatory perspective had converted to a Reit at the end of May. However, Hamman said Attacq was not yet a fully-fledged Reit, because its interest cover ratio was still too high and the lowest of all the Reits.
He said the reduction of Attacq's interest cover ratio was a focus for the company's management, which would be achieved through the disposal of assets that were not generating a cash return.