Page 9 - Waterfall Issue 10 2021
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being disrupted by the pandemic, Attacq’s well-articulated strategy
technology innovations and encompassing foresight-focused
shifting customer behaviours. developments that recognise and
meet the needs of current and future
These innovations are something the residents and tenants is capturing the the need for collaborative spaces
company has been tracking closely markets’ interest. This can be seen in is gaining prominence. Attacq
for many years, using data to inform the skilful weaving of commercial, can attract these clients due to its
investment, product and innovation residential, retail and lifestyle products flexible solution offerings in terms
decisions as it seeks to leverage the to create a compelling, premium of space requirements and leases,
intersect between technology and precinct proposition in Waterfall City. with a focus on space optimisation,
people. With lockdown accelerating convenience, and space as a service.
the shift by shoppers from in-store In fact, following the success of the
transaction-focused behaviour to luxury residential development, Ellipse A clear example of how this is working
online shopping, Attacq’s ability to Waterfall, and interest from both is that Waterfall City continues to
augment customer engagement buyers and clients in a precinct offering attract quality clients, resulting in
through an increasingly experiential smart, safe and sustainable community a total 38 087m² effective GLA of
proposition has been key to its spaces in established nodes, Attacq new developments underway since
successful shopper, resident and tenant has expanded the residential offering year end. This includes vantage’s
acquisition (and retention) strategies. of Waterfall City by launching its new data centre (11 785m²) and
latest residential development, Cotton On’s head office and
“The ability to not only embrace The Mix. Sales achieved to date for distribution centre (20 786m²).
change but optimise on it, is imperative The Mix surpassed expectations,
for any business seeking sustainability despite being launched during the While lockdown restrictions have
in our dynamic environment. All over COvID-19 lockdown. Post-year-end, been eased, there remains a level
the world, consumer behaviour evolves Attacq welcomed its first apartment of uncertainty in the operating
as people demand more from their residents to the city, following the environment. In addition, it is the
brands and their communities. The transfer of 196 Ellipse Waterfall units. unknowns around the vaccination
pandemic has seen a seismic shift in rollout and the timing of the opening
the need for connectedness in safe CFO, Raj Nana, comments, “Our of the economy that prolong the need
spaces – and Attacq has responded proactive financial strategy, including to proceed with prudence. Accordingly,
by creating retail-experience hubs. debt reduction initiatives – a key the board has resolved not to provide
Here, we provide an optimised strategic focus over the past 18 guidance for the financial year ending
client mix – a space where people months – will continue to improve 30 June 2022. Attacq is, however,
connect and benefit from on-demand our gearing position. Improved debt seeing signs of improvement in the
services, collection points, and levels certainly aid our investment case real estate sector and, specifically,
loyalty rewards,” adds van Niekerk. and strengthen our capital position.” in their business drivers.
The Mall of Africa completed its first Attacq’s strategy is to get closer van Niekerk concludes, “Attacq’s
five-year lease cycle at the end of to clients, with tailored offerings approach of embracing and adapting
April 2021 and management took the that address their needs today and to business disruption has built
opportunity to optimise the tenant into the future too. The company’s resilience into the portfolio and
mix by introducing 20 new brands, property and asset management its prospects. We continue to seek
which included new-concept stores teams proactively engage with enhanced prospects to strengthen
for HiFi Corporation and Clicks Baby, individual clients across the entire our capital structure and create
as well as Ted Baker, Hugo Red, and portfolio to listen to, and understand sustainable value for all – and
Nando’s – some of these were as a their business needs. As clients adapt we look forward to a new year of
direct result of shopper requests. to hybrid working arrangements, ambitious, exciting opportunities.”
Some quick facts:
• Distributable income from South African operations increased • South African occupancy levels improved to 95.2%.
by 22.5%. • Five buildings completed in Waterfall with a further five
• R2.8 billion of capital recycling announced to date. under construction.
• Liquidity improved to R1.7 billion at year-end. • Total of 47 930m² of new developments underway in
• Group gearing decreased to 43.3%. Waterfall City.
• South African real estate portfolio rental collection rate of 101.5%.
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