Atterbury Property Fund

Atterbury Group announced today it has launched Atterbury Property Fund, a new real estate growth fund that will become the investment vehicle for the existing and future Atterbury assets in South Africa, Namibia and Mauritius.

Louis van der Watt, CEO of Atterbury Group, says: “Atterbury Property Fund will take Atterbury confidently into the future. We are excited to take the next step in our journey.”

As a leading South African property developer and investor with a successful 22-year track record, Atterbury is perhaps best known as the developer and co-owner of the new Mall of Africa in Waterfall, Midrand. What is more, with van der Watt at its helm, Atterbury has earned an enviable reputation for creating and growing property funds. Most recently, JSE-listed real estate capital growth fund Attacq was spun out of the Atterbury stable. Before that, it formed Attfund, which was sold to Hyprop in 2011. Atterbury Property Fund is Atterbury’s next chapter.

Atterbury Property Holdings, in which Rand Merchant Bank Holdings (RMH) recently announced it is in the process of acquiring a 25.01% stake, will own 80% of the shares in Atterbury Property Fund. Atterbury’s employees will hold the remaining 20% stake, aligning the interests of the company and its staff.

Starting as a closed unlisted fund, Atterbury Property Fund will launch with assets valued at R3,1 billion.

It has secured a large immediate development pipeline that includes R2 billion worth of top-structure developments over the next three years. All these developments, which will transfer to Atterbury Property Fund on completion, are distinguished by the quality design and function that the market has come to know and trust from Atterbury.

“The aim is to grow it towards a market-related liquidity event that will give the market access to participate,” says Atterbury Property Fund CEO, Wouter de Vos.

As CEO, de Vos brings over 21 years of experience and an impressive investment acumen to the fund, including 18 years at Investec Private Bank, where he headed up the Northern Region and served on the national executive team.  He specialised in private client investment banking including structured property finance as well as growth and acquisition finance. He was also director and co-owner of boutique investment firm Talana Capital.

It is anticipated that Atterbury Property Fund’s initial property assets will include, among others: a 10% stake in the newly opened 130,000sqm Mall of Africa in Waterfall, Midrand; 15% of the 46,200sqm Bagatelle Mall of Mauritius; 25% of Namibia’s first regional mall; the 52,089sqm The Grove Mall of Namibia in Windhoek; Club mixed-use office and retail precinct opposite the Pretoria Country Club; the 16,250sqm Riverwalk Office Park in Pretoria which includes Deloitte’s head office; and KPMG’s 4,300sqm Hillside offices in Lynnwood, Pretoria.

De Vos explains: “Atterbury Property Fund will acquire the pipeline assets from Atterbury on favourable terms in exchange for financial assistance during the development phase. This will result in superior financial returns for its shareholders.”

He adds: “By consolidating Atterbury’s assets into Atterbury Property Fund, we will also benefit from more favourable funding terms, as well as potentially accessing debt capital markets.”

The fund’s long-term approach will mean that shareholders won’t receive distributions for the first few years. “Atterbury Property Fund is investing for the long term,” says de Vos.  “We’re focused to take advantage of property investment opportunities where we can create and add value with Atterbury’s leading-edge property development and asset management expertise. We will leverage of the existing and well-established Atterbury networks as well as proven brand.”

In addition to ventures with existing Atterbury partners, Atterbury Property Fund is eager to create new investment partnerships, including investing in JSE-listed property counters.

“We will be highly selective and target our investment into companies where we can add value through our development, deal making, investment and asset management abilities, and exert strategic influence at management and board level,” notes de Vos.

A truly South African company, Atterbury was founded in 1994 at the same time as democracy was born in South Africa. Over more than 22 years, it has established a long track record of social and economic transformation, and this new South African based fund will continue this proud tradition.

As a first step, RMH will make a 25.01% investment in leading South African property company, Atterbury

Investment holding company RMH today announced that will expand its current, single investment in FirstRand to create a property investment business. As a first step in the strategy of establishing a diversified portfolio of scalable entrepreneur-led businesses with proven track records in managing and building out property portfolios, the group announced its intention to make a 25.01% investment in leading South African property group, Atterbury (only condition precedent remaining is Competition Commission approval).

Atterbury will become RMH’s key development partner in its core portfolio that will target the more traditional and larger areas of South African property (principally office, retail and industrial property). To supplement this core portfolio, the RMH property business will also include a specialist portfolio which will focus on niche areas of the property sector.

The RMH property strategy will focus on owner-managed businesses, a broader value chain in property, an unlisted portfolio, a balance between net asset value and yield, as well as a lower concentration risk as RMH will acquire stakes across multiple strategies, sub-sectors and geographies in time.
The group will follow a phased approach to acquire its various property investments.
RMH’s CEO Herman Bosman said:

“Our new property investment strategy meets our stated objective of creating shareholder value and also further diversifies RMH’s earnings base as we will invest across the breadth of the property value chain. In line with our history and ethos, we will focus on entrepreneurial and owner-managed businesses. The strategy will involve investing in physical property portfolios as well as vertically integrated property companies, specifically with internal management teams that offer asset management, development management and property management skills.

“As a first step in the realisation of our strategy, we have found an excellent partner in Atterbury. They have a 22-year successful track record in entrepreneurial skills, as well as development and asset management ability. Their team is regarded as the most innovative player in the South African property market. We will work with Atterbury and other future investment partners to assist them with capital, strategic input, networking opportunities, structural longevity and additional governance systems.”

Atterbury’s CEO Louis van der Watt added:

“It was evident from the first meeting that Atterbury and RMH share a similar culture and value set. Atterbury, as a relatively small company, is honoured to be reckoned amongst the RMH stable’s other prestigious investments. Having developed more than two million square meters both inside and outside of South Africa, we are the ideal partner for RMH to capitalise on property opportunities.”

Recent Atterbury key developments include 300 000 square meters of commercial, retail and industrial properties on the Waterfall land in Gauteng, including the flagship 130 000 square meters Mall of Africa that opened last week.

Although Atterbury is an unlisted entity, it has also played a significant role in two major transactions in the listed property sector. Atterbury was involved in the establishment of Attfund that was reversed into Hyprop in 2011. The Attfund assets remain an important part of Hyprop’s current portfolio. Atterbury formed Attacq in 2005 and played an instrumental role in the successful listing of Attacq in 2013.

The financial effects of this transaction will be immaterial on the financial results of RMH over the short to medium term. RMH intends to fund its investment into Atterbury through preference share funding.

The successful conclusion of the investment into Atterbury is subject to approval by competition authorities.

Investment holding company RMH today announced that will expand its current, single investment in FirstRand to create a property investment business. As a first step in the strategy of establishing a diversified portfolio of scalable entrepreneur-led businesses with proven track records in managing and building out property portfolios, the group announced its intention to make a 25.01% investment in leading South African property group, Atterbury (only condition precedent remaining is Competition Commission approval).

Atterbury will become RMH’s key development partner in its core portfolio that will target the more traditional and larger areas of South African property (principally office, retail and industrial property). To supplement this core portfolio, the RMH property business will also include a specialist portfolio which will focus on niche areas of the property sector.

The RMH property strategy will focus on owner-managed businesses, a broader value chain in property, an unlisted portfolio, a balance between net asset value and yield, as well as a lower concentration risk as RMH will acquire stakes across multiple strategies, sub-sectors and geographies in time.
The group will follow a phased approach to acquire its various property investments.

RMH’s CEO Herman Bosman said: “Our new property investment strategy meets our stated objective of creating shareholder value and also further diversifies RMH’s earnings base as we will invest across the breadth of the property value chain. In line with our history and ethos, we will focus on entrepreneurial and owner-managed businesses. The strategy will involve investing in physical property portfolios as well as vertically integrated property companies, specifically with internal management teams that offer asset management, development management and property management skills. As a first step in the realisation of our strategy, we have found an excellent partner in Atterbury. They have a 22-year successful track record in entrepreneurial skills, as well as development and asset management ability. Their team is regarded as the most innovative player in the South African property market. We will work with Atterbury and other future investment partners to assist them with capital, strategic input, networking opportunities, structural longevity and additional governance systems.”

Atterbury’s CEO Louis van der Watt added: “It was evident from the first meeting that Atterbury and RMH share a similar culture and value set. Atterbury, as a relatively small company, is honoured to be reckoned amongst the RMH stable’s other prestigious investments. Having developed more than two million square meters both inside and outside of South Africa, we are the ideal partner for RMH to capitalise on property opportunities.”

Recent Atterbury key developments include 300 000 square meters of commercial, retail and industrial properties on the Waterfall land in Gauteng, including the flagship 130 000 square meters Mall of Africa that opened last week.

Although Atterbury is an unlisted entity, it has also played a significant role in two major transactions in the listed property sector. Atterbury was involved in the establishment of Attfund that was reversed into Hyprop in 2011. The Attfund assets remain an important part of Hyprop’s current portfolio. Atterbury formed Attacq in 2005 and played an instrumental role in the successful listing of Attacq in 2013.

The financial effects of this transaction will be immaterial on the financial results of RMH over the short to medium term. RMH intends to fund its investment into Atterbury through preference share funding.

The successful conclusion of the investment into Atterbury is subject to approval by competition authorities.

After much anticipation, we are incredibly privileged to announce today’s launch of the new Atterbury Group real estate development fund. This new fund will become the holding company for a number of Atterbury’s quality property assets. A strategic BEE deal is also on the radar.

Louis van der Watt, CEO of the Atterbury Group, says: “Atterbury Property Fund will take Atterbury confidently into the future. We are excited to be taking the next step in our journey.”

Atterbury has earned an enviable reputation for creating and growing property funds. Most recently, JSE-listed real estate capital growth fund Attacq grew out of the Atterbury stable. Atterbury Property Fund is Atterbury’s next chapter and Van der Watt and Atterbury’s employees will be among the shareholders in the fund.

Starting as an unlisted fund, Atterbury Property Fund will launch with assets valued at R2 billion. The fund will also have an immediate development pipeline with potential to double this value with top quality assets, distinguished by the quality design and function that the market has come to know and trust from Atterbury.

The current portfolio is predominantly high-end retail, with some exposure to AAA-grade commercial offices. Our aim is to triple the fund’s asset value over the next five years. This could be achieved through leveraging Atterbury’s proven track record and networks, as well as through strategic partnerships – true to Atterbury’s slogan, It’s a matter of association.

Atterbury’s shareholding in the following assets will be held within the Atterbury Property Fund: The Grove – Mall of Namibia (52 089m²), Bagatelle – Mall of Mauritius (46 225m²), The Falls retail development in Roodepoort (10 341m²), Bela Mall (17 294m²) and the Riverwalk Office Park (12 000m²) tenanted by Deloitte. New and future developments included in the pipeline are the prestigious BAT building at the V&A Waterfront and the new KPMG building in Pretoria.

This unique development fund will, in the Atterbury spirit, take advantage of property investment opportunities where it can create and add value with its leading-edge property and asset management expertise.

The fund’s long-term approach will mean shareholders won’t receive distributions for the first few years. Atterbury Property Fund is investing for the long term. As a new real estate development fund, it will already have the track record, know-how, experience, relationships and credentials to make a real impact, creating even more opportunities and value for our investors, partners and society, now and in the future.

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