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Attacq to use its investment in MAS Real Estate to build exposure in Europe

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Capital growth fund Attacq has decided to sell its Serbian and Cypriot interests to Atterbury Europe to focus on its key investments.

Attacq will use its investment in MAS Real Estate to build exposure in Europe instead. MAS owns shopping malls in Western Europe and recently spread into Eastern Europe.

Attacq subsidiary AIH International Limited said it would dispose of its 48.75% equity shareholding and loan account in Atterbury Cyprus and its 25% equity shareholding and loan account in Atterbury Serbia, selling them to Atterbury Europe for an aggregate consideration of €93m (R1.33bn), which is payable in cash.

Attacq holds a 37.32% stake in MAS Real Estate, which is listed on the JSE’s main board.

“MAS has changed its investment focus to include Central and Eastern Europe and is increasing its exposure to this region via its joint ventures with Prime Kapital. This now positions MAS well to be Attacq’s primary entry point into these markets,” said Attacq CEO Morné Wilken.

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“Attacq’s investment in MAS provides it with increased exposure to the Central and Eastern European property markets 
given MAS’s Prime Kapital joint ventures. The substantial Prime Kapital pipeline and speed at which capital can be deployed by a proven and experienced team into these markets resulted in Attacq making the decision to exit its other investments in the region at attractive values,” said Wilken.

Meago Asset Management executive director Jay Padayatchi said MAS had been expected to be Attacq’s preferred investment vehicle for Central and Eastern Europe.

The disposals were in line with Attacq’s decision to focus on its key investments, on its Waterfall node development pipeline in Gauteng and its interests in MAS Real Estate and AttAfrica.

Atterbury Cyprus owns a 99.67% shareholding in The Mall of Cyprus, which is the owner of the Shacolas Emporium Park located in Nicosia, Cyprus, and a 99.50% shareholding in The Mall of Engomi plc, which owns the Mall of Engomi, also located in Nicosia.

Atterbury Serbia holds 50% of a portfolio of seven retail properties in Serbia, including Serbia’s largest mall, Ušce Shopping Centre, in Belgrade.

Attacq will receive €57.8m in respect of Atterbury Cyprus and €35.2m in respect of Atterbury Serbia. The proceeds will be used for settling debt relating to its South African property portfolio and funding the development of its Waterfall pipeline.