By THE AFRICA BAZAAR Staff Writer
Attacq Limited made its debuts on Johannesburg Stock Exchange on Monday under the Real Estate – Real Estate Holdings and Development sector, with the short code “ATT”, after it raised $80 billion (R800 billion) last week through an oversubscribed private placement managed by Java Capital.
“Attacq has come to market at a time ideal to increase the liquidity of our shares, raise capital for development and heighten our profile,” said Morne Wilken Attacq chief executive office. “The positive response to our private placement reflects strong positive market support and has successfully expanded our investor base. All this strengthens Attacq’s prospects and creates a foundation for future growth.”
The company, previously known as Atterbury Investment Holdings announced its listing plans late in September, offering investors an opportunity to share in a unique long-term sustainable real estate capital growth fund.
Attacq’s listing brings JSE’s property listings for this year to a total three, including GoGlobal Properties, which listed in April and Tower Property Fund this past July.
Commenting on the listing, Zeona Jacobs, Director of Issuer and Investor Relations at the JSE said, “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.”
The JSE’s real estate sector now boasts 46 listed property companies, accounting for just over 4 percent of overall JSE market capitalization. The listed property section has grown to R177.2 billion at end of September 2013 from R19 billion at the end of September 2003. The sector’s growth has been partly driven by investors’s global search for predictable and growing income streams. According World Economic Forum’s latest Global Competiveness Report, South Africa is ranked second in the world for raising capital through the local equity market.
The company has delivered a compound annual growth rate to investors exceeding 20 percent since its establishment in 2005 through its domestic and internationally diversified portfolio assets.
Wilken stresses investment in excellent development opportunities, especially those at Waterfall Business Estate, will be key to Attacq’s strategy going forward. “We will also continue to hold a 25 percent interest in Atterbury Property Holdings, the successful development company which Attacq shares a common history. This strategic holding positions Attacq to access and participate in opportunities and deal flow generated by this dynamic developer.”
Attacq’s investment in completed buildings, including its prime Waterfall Business Estate in Johannesburg, provides stable and growing income and balance sheet strength to responsibly secure and fund high-growth opportunities within developments. In turn, the group’s developments create a pipeline of high-quality investment properties that grows the investment base, as developments are retained rather than realized.
“Attacq will continue to seek opportunities to meet our optimal investment portfolio ratio and to expand our development pipeline to grow long-term prospects,” said Wilken.