Attacq successfully concludes two disposals

Posted On Monday, 01 February 2021 06:45 Published by
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Attacq Limited, the JSE-listed REIT and owner and developer of the iconic Waterfall precinct, recently concluded two disposal transactions.

Attacq_CIO_ Peter de_Villiers

The sale of 41.66 million shares in MAS Real Estate Inc. (“MAS”) for R500.0 million to an entity owned by the Mary Oppenheimer family interests. This transaction will result in the company’s shareholding in MAS reducing to around 14.8%.

During December 2020, the company also successfully closed the disposal transaction of the office property it owned on 2 Eglin Road, Sunninghill for R76.6 million. These transactions are in line with Attacq’s debt reduction plan with the objective of strengthening the balance sheet and creating a sustainable capital structure.

MAS is a property investor and developer, with its strategy predominately focused on retail and residential properties in Central and Eastern Europe. Founded in 2008, MAS’ primary growth market is in Romania, owning shopping centres across the country.

Attacq_CFO_Raj_Nana

 

Raj Nana, CFO at Attacq says “We are pleased to announce the successful conclusion of a partial disposal of our MAS holding and the disposal of the office building located on Eglin Road, Sunninghill. Since the onset of the COVID-19 pandemic, we have increased our focus on capital management and liquidity in order to improve our debt capacity. This is a significant step for Attacq in delivering on that strategy.”

“The proceeds from the disposals will be allocated towards reducing our interest-bearing debt, and in doing do so, improving on our debt metrics like our interest cover ratio and gearing levels. Part of the disposal proceeds will be used to reduce our Euro debt exposure which will mitigate our foreign exchange risk,” he added.

In December 2020, Attacq announced that it was targeting a disposal programme of R2.0 billion of gross assets. This target excluded any part of its investment in MAS.

Peter de Villiers, Attacq’s CIO concludes, “Attacq supports MAS’ stated strategy and its focus on long-term total returns. However, the partial disposal provides us with an excellent opportunity to improve our liquidity and ultimately create a more sustainable capital structure for the long-term as we continue to navigate this challenging period.”

Last modified on Wednesday, 03 February 2021 07:03

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