JSE-listed capital growth company Attacq and Sanlam Properties have created a joint venture for further light industrial commercial and retail development in Waterfall, a growing city in the north of Johannesburg.
Property analysts have said there is growing demand for light industrial retail estate in SA. This would include warehousing for storing goods for online retailers, and for imported goods.
“Globally, the industrial sector, and specifically big-box distribution centres, have been doing incredibly well on the back of increased demand and little or no new supply,” Grindrod Asset Management chief investment officer Ian Anderson said.
The new joint venture has acquired 28ha of Waterfall land from Attacq, and an additional adjacent 100ha from the Mia business family, securing a total of 128ha of usable land on the eastern side of the N1 freeway and south of the Allandale interchange.
This land lies in the Waterfall development node, which is located between the Allandale and Buccleuch interchanges.
Sanlam will hold 80% and Attacq will hold 20% in the joint venture, with Attacq having the right to increase its shareholding to 50%. Attacq has already exercised this right. As much as 114ha of the land will be used for light industrial commercial developments, with the balance of 14ha to be developed for retail purposes. The development roll-out will be managed by Attacq.
“Sanlam has been a key investor in Attacq for many years. We value the relationship and welcome its investment now as a key development partner,” said Attacq CEO Morné Wilken.
CEO of Sanlam Properties André Rheeder, said the joint venture was a good strategic move by the group. “We look forward to these development ventures and believe these investments will deliver phenomenal growth.”
Waterfall City is the biggest development under construction in SA.