Mall of Africa owners Attacq have converted to a Real Estate Investment Trust (Reit) on the JSE.
Attacq, which owns the Mall of Africa and numerous other assets in the Waterfall precinct, announced this week that it had converted to a Real Estate Investment Trust (Reit), following JSE approval. Most property companies listed on the JSE are Reits.
Melt Hamman, Attacq’s interim CEO, who was nominated for this year's CFO Awards, says this will enable the company to access a broader range of shareholders. He said:
"Our Reit conversion finalises our shift in focus from providing only capital growth to a focus on total return comprising sustainable income distributions as well as capital growth. We believe this strategy is a natural step given the progression in our business since listing in 2013… Our quality portfolio of South African income producing assets is underpinned by strong property fundamentals and with a gross asset base exceeding R28 billion as at 31 December 2017. We believe that Attacq will attract a broader investor base by converting to the widely understood Reit structure and by distributing earnings bi-annually."
Attacq was listed as a property company on the JSE in 2013. The intention to convert to an income-focused Reit was a part of the revised strategy which the company announced to the market in June 2017.
