Attacq unharmed by attacks


Attacq unharmed by attacks


Published Date: 2021-07-29 | Source: INCE|Community | Author: The Finance Ghost

Attacq unharmed by attacks

To be honest, I'm not sure why Attacq waited this long to update the market on the damage (or lack thereof) from the riots and looting.

Nevertheless, the good news is that the retail and logistics centres did not suffer any losses or damage from the civil unrest. In fact, the Mall of Africa and Waterfall Corner were only shut for one day for security reasons.

This particular comment speaks volumes about what we went through as a country just a couple of weeks ago:

"The safe keeping of the Waterfall precinct was, in large part, due to the support of local communities, taxi associations, local law enforcement and private security, all of whom worked together."

As a quick reminder, Attacq has a focused portfolio in the Waterfall City area in Midrand. There are limited other investments, some of which the fund is in the process of exiting (like Rest of Africa).

Attacq has also sold down its stake in MAS Real Estate, which gave the fund exposure to European regions. The MAS shareholding has been reduced from 20.7% to just 6.5%, raising R1.38bn in the process. This helped Attacq reduce debt without having to sell off strategic assets locally.

Having said that, Attacq executed a smart deal locally with Equites on some of the logistics properties. I wrote about that previously here.

If one carefully considers the reasons why property funds have had a terrible time in the past 18 months, it's not unreasonable to arrive at the conclusion that Attacq is well-positioned among the funds for a potential recovery.


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