R1 billion Mall of Africa deal approved

The Competition Commission has approved a R1.07 billion deal for Attacq Waterfall Investment Company (AWIC) to buy 20% of Mall of Africa.

The Mall of Africa opened its doors on 28 April 2016. It is South Africa’s biggest single-phase mall development and the largest project in Waterfall City.

It is South Africa’s largest shopping mall ever built in a single phase, with over 130,000 square meters of retail space and over 300 shops.

It features the largest rooftop Solar PV system in the southern hemisphere. It further boasts the largest integrated rooftop PV/Diesel hybrid solution in the world.

As of 31 December 2023, the mall’s compounded annual trading density growth over the past three years was 16.1%. Its rent to turnover ratio was 7.5%.

Mall of Africa was developed and co-owned by the Atterbury Property Group. It was a R5-billion development.

In May, the JSE-listed Real Estate Investment Trust (REIT) Attacq announced its subsidiary, AWIC, has acquired the remaining 20% stake in Mall of Africa from the Atterbury Group.

Attacq is a strategic development partner in Waterfall City, and AWIC held an 80% stake in Mall of Africa before the deal.

On Thursday, the Competition Commission approved the deal. It recommended that the Tribunal unconditionally approve the proposed transaction.

The Commission said the proposed transaction is unlikely to substantially lessen or prevent competition in any market.

“The proposed transaction does not raise public interest concerns,” the Competition Commission said.

Attacq’s latest annual report showed that the positive retail trade in Mall of Africa resulted in a 91.6% increase in turnover rental and a 71.4% increase in third-party income.

The company added that Mall of Africa became a preferred destination for exhibitions and advertising.

“A 10.8% growth in rental income for the year was supported by 21 new brands being introduced, 16 store upgrades, and 33 leases renewed,” it said.