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Manufactured resources


Manufactured resources are allocated across our four key drivers:

  • South African portfolio
  • Developments at Waterfall
  • Investment in MAS
  • Rest of Africa retail investments.


2018 MSCI awards

MSCI awards for best-performing property fund over three years, based on annualised return, in the office sector (fourth year running) and industrial sector (third year running)

2019 SAPOA awards

2019 SAPOA awards for best industrial development for Cummins Southern Africa Regional Office

2019 Generation NEXT award

Voted ‘coolest’ mall in South Africa through the Sunday Times GenNxt survey for the second year running

Strategic matters

        Refer to our
value-creation process.

Governance oversight

Investment committee, audit and risk committee, combined assurance forum, exco, development exco and SA portfolio exco

Key board and committee decisions

Noted   Considered   Approved   Resolved
  • The performance of the four key drivers
  • Video flythrough of Waterfall City visualising its future look and feel
  • Progress on sale of Ellipse residential units and progress of each of the other developments at Waterfall
  • Assets earmarked for recycling
  • The collective impact of the Group Five business rescue
  • The actual performance of the assets over a 12-month period
  • The state of the construction industry and its impact on Waterfall developments
  • Increased competition in the office sector
  • Impact of new technologies
  • Operational budgets for the SA portfolio for FY19
  • Participating in the Edcon recapitalisation programme
  • Sale of 20.0% interest in the Attacq Equites joint venture
  • Sale of interest via AttAfrica in Achimota Retail Centre, Ghana and post year end, Manda Hill Mall, Zambia
  • To exit Rest of Africa retail investments
  • We will not follow future capital raises

Progress report

Performance highlights and lowlights

  • Trading density growth in retail portfolio of 6.8%, with Mall of Africa having increased by 13.1%
  • South African portfolio has a weighted average lease expiry of 6.5 years
  • Completed seven buildings in Waterfall with a further nine buildings under construction
  • MAS exceeded dividend guidance with DEPS increasing by 41.9% from EUR6.35 cps to EUR9.01 cps
  • Reduction in Rest of Africa exposure with the disposal of interest in Achimota Retail Centre and post year end, Manda Hill Mall
  • Negative fair-value adjustments on Waterfall development rights
  • Impairments of shareholder loan accounts and equity provided to AttAfrica and Gruppo
  • Limited disposal of assets as potential buyers are constrained to execute on sale transaction due to equity and funding constraints

Strategic and operational risks and opportunities

Risk Opportunity
South African portfolio
  • Consumers remain under pressure
  • Oversupply of office space
  • Increased cost of occupancy due to above-inflation growth in input costs, particularly utilities
  • Alternative use in our malls to provide a more holistic shopping experience for consumers
  • Co-working opportunities introduced
  • Introducing a sustainability strategy to potentially reduce cost increases
  • Trading density growth for the portfolio
Developments at Waterfall
  • Increased roll-out period
  • Increased holding costs
  • Develop a sustainable city
Investment in MAS
  • Foreign exchange risk
  • Development risk
  • MAS not meeting its dividend growth target
  • Weaker rand will increase value of investments as well as future dividends
  • Hedging future dividends
  • Revised MAS strategy to invest into Central Eastern Europe
Rest of Africa retail investments
  • Exit remaining assets at carrying values
  • Recycling capital to reduce debt and fund the Waterfall pipeline


Progress in 2019

In our last report, we disclosed focus areas for 2019.

  Achieved     More information  
  Focus areas

South African portfolio

  • Optimising net operating income
  • Proactively manage trading densities and rent-to-turnover ratios
    South African portfolio
South African portfolio

Developments at Waterfall

  • Developing and ongoing management of Waterfall City and Waterfall Logistics Hub
  • Developing residential units in Waterfall City
Project launched in November 2018
    Developments at Waterfall
Developments at Waterfall

Investment in MAS

  • Targeted 15.0% growth in dividend
  • Unlocking value from acquisition and development pipeline
    Developments at Waterfall
Developments at Waterfall

Rest of Africa retail investments

  • Optimising net income and asset value
  One property was disposed of during the year and a second after year end. However, investments were further impaired     Investment in MAS  



Our quality operational South African portfolio comprises retail, office and mixed-use, light industrial and hotel properties. The quality of this portfolio makes it defensive in a subdued economy.

For the year ended 30 June 2019, distributable earnings per share generated by the South African portfolio increased by 9.1% to 59.0cps (2018: 54.1cps). The value of the South African portfolio is R20.5 billion (2018: R20.9 billion), comprising 75.6% (2018: 75.2%) total gross assets.

Georgaphical by PGLA and gross monthly rental

Sectoral profile by PGLA and gross monthly rental

Effective PGLA evolution

During the year we purchased an adjacent property to the Eikestad Mall as part of our vision for the precinct. This property is rented by JET with a total effective PGLA of 605m2.

First key driver: South African portfolio
Second key driver: Developments at Waterfall
Third key driver: Investment in MAS
Fourth key driver: Rest of Africa retail investments

First key driver: South African portfolio

Second key driver: Developments at Waterfall

Third key driver: Investment in MAS

Fourth key driver: Rest of Africa retail investments

Our property management vision

Our FRESH (fun, relevant, easy, social and helpful) concept is a focus point for our asset and property management teams. The aim is to create a compelling, enjoyable experience that surprises and delights our customers (shoppers and tenants) and makes them smile.

Leasing and vacancy management

To ensure sustainable income from our tenants:

  • Leasing and vacancy management is aimed at attracting new tenants and long-term tenant retention
  • The tenant-vetting process was enhanced over the past year to ensure early detection of tenants under financial pressure
  • We frequently meet with our tenants' management teams, especially where a potential tenant failure is identified
  • We work with our tenants to assist with their businesses, eg designing specific campaigns for retailers and categories that need assistance
  • Total occupancy cost and rightsizing tenant space are focus points as cost-saving initiatives
  • We use shopper data in our retail portfolio to understand their behaviour and design opportunities for retailers to run joint campaigns, incentives or specials
  • Incubating small new South African retailers and giving successful retailer groups opportunities to introduce new brands within our mall
  • We always consider alternate uses for our PGLA that support the tenant and shopper experience.

New tenants

In a challenging leasing market, our ability to attract new tenants and retain our existing tenants correlates directly to our tenant mixes and the desirability of our spaces.

  • Mall of Africa introduced the well-loved South African brands Exclusive Books and Yuppiechef in June 2019. Customer demand for an Exclusive Books outlet had been strong since the mall opened in 2016, while the Yuppiechef store marked this successful online retailer's expansion into Gauteng. Tommy Hilfiger also opened its doors in June, adding to the mall's global fashion offering. Post-year end, Mall of Africa welcomed Pick n Pay, PEP and Dealz to meet the needs of its diverse shopper base
  • At Eikestad Mall, H&M opened in November 2018, replacing the Edgars store and reducing our exposure to Edcon. Following good initial sales and customer demand, this store was expanded in May 2019 to include an H&M Kids section. In addition, Sportsman's Warehouse opened in December 2018, addressing an underrepresented category in a sports-focused community. The Woolworths expansion will be completed in October 2019 in response to huge demand for more product lines
  • At MooiRivier Mall, the Dis-Chem store expansion was completed by June 2019 to create more floor space and enhance trading densities
  • Garden Route Mall was almost 100% occupied during the year and we replaced CNA with an expansion of Cotton On
  • At Waterfall Corner we had good trading density growth of 9.9% for the year due to the office space being full let and residential densification in the precinct
  • The fully let Lynnwood Bridge precinct, including Glenfair Boulevard continues to outperform MSCI benchmarks. Both Safari & Outdoor and King's Meats have taken extra space for product expansion. City Lodge has renewed their lease for a further 10 years. South Africa's very first Gary Rom for men will soon open at Lynnwood Bridge - retail. Management is in discussion with various tenants regarding future expansions and refurbishments at Glenfair Boulevard.


Overall portfolio vacancies, measured in terms of PGLA, decreased by 9 244m2 to 46 418m2 from 30 June 2018, largely due to vacancies filled at Waterfall. We have finalised a lease with Dis-Chem for a warehouse and leases were concluded in Gateway West with Sage and Spaces.

The overall vacancy rate reduced to 6.2% from 7.7%. Vacancies not yet filled largely refer to 2 Eglin (20 732m2), Brooklyn Bridge Office Park (3 537m2), Gateway West (2 947m2) and two speculative developments, namely the midi warehouse (5 262m2) and Waterfall Corporate Campus - building 2 (3 230m2). Subsequent to year end, 6 594m2 of vacant space was let.

  2019     2018  
Sector vacancies %   PGLA m2     %   PGLA m2  
Retail 2.9   8 562       1.7   4 946    
Office and mixed-use 11.8   32 594       16.7   42 198    
Light industrial 3.2   5 262       5.3   8 518    
Hotel   –         –    
Portfolio vacancy 6.2   46 418       7.7   55 662    
Less: filled post-year end 0.9   6 594       3.0   21 791    
Less: 2 Eglin 2.8   20 732       2.9   20 732    
Adjusted portfolio vacancy 2.5   19 092       1.8   13 139    
Waterfall 1.4   10 610       0.6   4 573    
Other 1.1   8 482       1.2   8 566    

* Restated due to the deconsolidation of Nieuwtown and Majestic

Leases totalling 24 498m2 (3.3% of total PGLA) expired during the year, of which 18 420m2 has been leased at a 0.7% increase in rental rates (weighted on the average rental rate per square metre) and a weighted average lease escalation rate of 5.0%.

Lease renewals PGLA  
rental rate
Retail 14 944     79.0   1.6   4.5    
Office and mixed-use 3 476     89.4   2.8   7.6    


18 420     80.6   0.7   5.0    

* New H&M lease signed at Eikestad Mall, negatively impacting the escalation rate for new leases

Lease expiry profile by PGLA (m2)

Lease expiry profile by monthly gross revenue (R’000)

Vacant   Monthly   FY20   FY21   FY22   FY23   FY24  
Retail   549   3 053   21 975   9 986   11 276   20 989  
Office and mixed-use     2 754   1 723   1 253   6 294   38 831  
Light industrial             11 430  
Hotel             2 986  
Total   549   5 807   23 698   11 239   17 571   74 236  
% 0.4   4.4   17.8   8.4   13.2   55.8  

Tenant profile

We have graded our tenant profile as stipulated by the JSE Listings Requirements, between A-, B- or C-grade tenants. The good credit quality of tenants in our portfolio is reflected in the high percentage of A-grade tenants. Most of our tenants, 68.4% (restated 2018: 68.7%) by PGLA, are categorised as A or large international and national tenants, large listed entities, and government or major franchises.

Smaller international and national tenants, listed tenants, franchisees, medium to large professional firms categorised as B make up 26.6% (restated 2018: 26.6%) of our tenancy.

The balance of our tenant base comprises 312 (restated 2018: 283) smaller tenants and sole proprietors categorised as C.

Tenant profile (%)


Managing tenant debt

We manage arrears proactively. To mitigate our exposure, processes for tenant credit assessment and financial vetting are conducted upfront and throughout the lease tenure.

Breakdown of trade receivables  2019 
Current  5 643     5 940        (5.0)   
30 and 60 days  6 310     2 577        144.9    
>90 days  10 800     5 669        90.5    
Total arrears  22 753     14 186        60.4    
Less: Provision for doubtful debt  (12 881)    (4 843)       166.0    
Trade receivables  9 872     9 343        5.7    
Net arrears (trade receivables past due but not impaired) 4 229     3 403        24.3    
Total rental income  2 057 548     1 864 042        10.4    
Total arrears* (% of total rental income) 1.0     0.7          
Trade receivables* (% of total rental income) 0.4     0.4          
* Excluding VAT
** Restated due to the deconsolidation of Nieuwtown and Majestic.


Capitalisation rates (cap rates) for the June 2019 valuations of completed building was largely unchanged. Independent valuers assess valuation inputs (ie long-term vacancy rates, rental reversions and market rental growth rates) every six months and certain inputs are more conservative in light of prevailing macroeconomic conditions, resulting in a negative fair-value adjustment of R176.1 million (2018: positive R457.0 million). This negative fair-value adjustment excludes the IFRS adjustment for straight-line leasing.

The main contributors to the negative fair-value adjustment are 2 Eglin, Brooklyn Bridge Office Park, Eikestad Mall, Mall of Africa and Torre Industries. Fair-value adjustments for the retail centres were affected by capital expenditure on reconfigurations and refurbishments. During the year, Torre Industries underwent a corporate restructure and decided to reduce its rented space. A net purchase consideration of R77.0 million was secured with a third party, and a settlement agreement was reached with Torre Industries for early termination of its lease.

All income-producing properties were valued on the discounted cash flow (DCF) methodology, except for 2 Eglin which was valued on the income capitalisation methodology due to the high-vacancy level.

The information below is weighted on property values for all properties valued using the DCF methodology:

Sector % of total
  Discountrates %   Exit
per PGLA
Retail 52.3   12.38   7.10   6.84   32 592  
Office and mixed-use 37.3   13.13   8.05   7.63   27 403  
Light industrial 8.6   13.51   8.32   7.51   9 714  
Hotel 1.8   13.74   8.40   7.91   25 338  
Total portfolio 100.0   12.78   7.58   7.21   26 185  

All property valuations at 30 June 2019, except for the Torre Industries building, are based on external valuations performed by Mills Fitchet Cape Proprietary Limited and Sterling Valuation Specialists CC.

Summarised highlights
2019       Restated*
Number of properties   44       37      
Total investment property (R'000) 18 032 109       17 918 525      
Total rental income (R'000) 2 057 548       1 864 042      
PGLA (m2) 750 825       722 731      
Value per PGLA (R/m2) 24 016       24 793      
Weighted average gross monthly rental (R/m2) 189       182      
Historical average annualised property (6MR) yield (%) 6.4       6.2      
Weighted average rental escalation^ (%) 7.1       7.2      
Weighted average escalation on new/renewed leases^ (%) 7.4       6.9      
Weighted average rental reversions   0.7       (10.7)    
Weighted average lease period^ (years) 6.5       7.0      
Vacancy^ (%) 6.2       7.7      
Retention success rate (%) 80.6       72.7      

^ Based on PGLA.
* Restated due to the deconsolidation of Nieuwtown and Majestic.

Jackie and her direct reports

Back: Jackie van Niekerk, Minisha Patel, Linda Meyburgh, Debbie Theron
Front: Danny Vermeulen, Grant Wing and Michael Clampett


Our retail and mixed-use precincts by effective value

For property details please click on the picture

Mall of Africa, Waterfall

Lynnwood Bridge precinct, including Glenfair Boulevard, Pretoria

Garden Route Mall, George

MooiRivier Mall, Potchefstroom

Eikestad precinct, Stellenbosch

Brooklyn Mall and Brooklyn Bridge Office Park, Pretoria

Mall of Africa, Waterfall

Total PGLA
124 713m2

R5.4 billion

Our 80.0% share of valuation
R4.4 billion

Value per m2
R43 682

Anchor tenants

Checkers Hyper, Game, Woolworths

Voted ‘coolest’ mall of the year, Sunday Times GEN NEXT 2018 and 2019

A 4 755kWp photovoltaic system has been in operation since 2018

Lynnwood Bridge precinct, including Glenfair Boulevard, Pretoria

Total PGLA
81 992m2

R2.8 billion

Our share of valuation
R2.8 billion

Value per m2
R34 726

Anchor tenants

Adams & Adams, Aurecon, City Lodge, Dis-Chem, Planet Fitness, Safari and Outdoor warehouse, Shoprite Checkers, Woolworths

A 752kWp photovoltaic system has been operating since 2017

Garden Route Mall, George

Total PGLA
53 816m2

R1.5 billion

Our share of valuation
R1.5 billion

Value per m2
R22 787

Anchor tenants

Dis-Chem, Game, Pick n Pay, Woolworths

A 990kWp photovoltaic system installation underway

MooiRivier Mall, Potchefstroom

Total PGLA
49 696m2

R1.2 billion

Our share of valuation
R1.2 billion

Value per m2
R24 861

Anchor tenants

Checkers, Game, Woolworths, Dis-Chem

A 1 004kWp photovoltaic system has been operating since 2017

Eikestad precinct, Stellenbosch

Total PGLA
38 227m2

R1.2 billion

Our 80.0% share of valuation
R930.9 million

Value per m2
R24 351

Anchor tenants

Checkers, Game, Food Lover’s Market, Woolworths

Brooklyn Mall and Brooklyn Bridge Office Park, Pretoria

Total PGLA
98 637m2

R3.3 billion

Our 25.0% share of Brooklyn Mall valuation and 100.0% of Brooklyn Bridge Office Park valuation
R1.2 billion

Value per m2
R33 111

Anchor tenants

Checkers, Dis-Chem, Game, Woolworths, SARS

A 960kWp photovoltaic system is in operation

Retail  2019     Restated**
Number of properties     9       
Total investment property (R'000) 9 918 911     9 924 231      
Value as % of total South African portfolio  51.8     52.5      
Total rental income (R'000) 1 114 314     1 058 450      
Non-PGLA income (R'000) 16.1     17.6      
PGLA (m2) 304 337     303 526      
Value per PGLA (R/m2) 32 592     32 648      
Weighted average gross monthly rental (R/m2) 236     222      
Historical average annualised property yield (%) 6.4     6.2      
Weighted average rental escalation^* (%) 7.0     7.2      
Weighted average escalation on new and renewed leases^* (%) 6.8     7.2      
Weighted average rental reversions  1.6     (10.7)    
Weighted average lease period^ (years) 4.1     4.5      
Vacancy based on PGLA (%) 2.9     1.2      
Retention success rate (%) 81.2     95.6      
Arrears (%) 0.6     0.5      
* Rental escalations excluding rates.
^ Based on PGLA.
** Restated due to the deconsolidation of Nieuwtown and Majestic.

Our retail precincts are located in well-established desirable nodes, ensuring we attract and retain tenants and shoppers. Activities in the period to strengthen and expand retail and mixed-use precincts included:

  • Lynnwood Bridge retail was upgraded and refurbished, enhancing the shopper and tenant environment
  • Acquiring a 756m2 PGLA premises next to the Eikestad Mall.

Trading densities and rent to turnover

The weighted average trading density for our retail portfolio increased to R3 114/m2 (2018: R2 915/m2), averaging annual growth of 6.8%. The weighted average rent to turnover is 7.6% (2018: 7.6%) for the year under review. The average rent includes basic rental, operating cost and municipal rates collection.

  Trading density*         Rent to turnover#  
Centre 2019
Super-regional 3 202   2 832   13.1   9.1   9.6   (5.2)  
Mall of Africa 3 202   2 832   13.1   9.1   9.6   (5.2)  
Regional 2 733   2 631   3.9   7.3   7.1   2.8  
Brooklyn Mall 3 033   2 900   4.6   10.7   10.1   5.9  
Eikestad precinct 2 659   2 490   6.8   7.0   7.0   -  
Garden Route Mall 2 765   2 649   4.4   7.0   6.7   4.5  
MooiRivier Mall 2 632   2 598   1.3   6.6   6.4   3.1  
Convenience 4 963   4 939   0.5   5.5   5.2   5.8  
Glenfair Boulevard 4 980   4 942   0.8   5.2   5.0   4.0  
Lynnwood Bridge 4 940   4 935   0.1   5.9   5.5   7.3  
Waterfall Corner 3 668   3 338   9.9   5.1   5.3   (3.8)  
Portfolio 3 114   2 915   6.8  
* Reported tenant turnover divided by PGLA based on a 12-month average.
# Gross rental including operating costs and rates divided by reported turnover based on a 12-month average.

Top five tenants

  Attributable gross rental
as a % of total gross rent
The Foschini Group   3.3  
Edcon   3.1  
Mr Price Group   2.5  
Woolworths   2.5  
Shoprite Checkers   2.2  


  Attributable PGLA
as a % of total PGLA
Woolworths   3.3  
Edcon   3.1  
Shoprite Checkers   2.5  
Massmart   2.5  
The Foschini Group   2.2  


Retail category 
of area 

of total 

Apparel  25.8  21.3  4.0 
Fashion  23.6  20.7  12.1 
Food  11.9  13.2  (1.5)
Health and beauty  5.4  11.7  3.3 
Food services  8.4  9.6  13.0 
Homeware, furniture and interior  4.9  4.7  7.6 
Sportswear and outdoor  6.8  4.3  9.5 
Entertainment  3.4  4.4  8.9 
Speciality  2.4  4.6  12.4 
Electronics  1.1  2.1  (0.1)
Books, cards and stationery  1.8  1.5  (4.5)
Accessories, jewellery and watches  0.5  0.7  1.1 
Eyewear and optometrists  3.5  0.6  5.9 
Luggage  0.3  0.4  (2.2)
Services  0.2  0.2  9.8 
Total  100.0  100.0  6.8 

Lynnwood Bridge, Pretoria

Edcon restructure

By participating in Edcon’s restructure programme, which began on 1 April 2019, we will subscribe for equity and convertible notes in Edcon at a total subscription price of R30.1 million over a 24-month period. For the period ended 30 June 2019, this amounted to R4.1 million, which we have excluded from distributable earnings and asset value.

Centre  Effective 
as at 
30 Jun 2018 
as at 
1 Oct 2019 
% Edcon   
per mall   
PGLA after   
as at   
1 Oct 2019   
Super regional             
Mall of Africa  80.0  13 855  9 350  9.4   
Brooklyn Mall  25.0  1 893  1 587  8.5   
Eikestad precinct  80.0  1 793  605  1.6   
Garden Route Mall  100.0  4 796  4 299  8.0   
MooiRivier Mall  100.0  4 955  4 955  10.0   
Glenfair Boulevard  100.0  223  223  1.4   
Total     27 515  21 019  2.8* 


Future impact on distributable earnings  FY20  
12 months#
9 months*
Total contractual rent  100.0  36.0   27.5  
Net cash to be received  59.1  21.3   16.3  
Equity subscription  40.9  14.7   11.2  
* Percentage of total effective PGLA as at 30 June 2019.
# Contractual rent excludes CNA which does not form part of the Edcon recapitalisation.

We are monitoring growth in the online retail market globally as illustrated below. This market has been slow to develop in South Africa, but we have to embrace and understand technology to assist our tenants in ensuring we create the ultimate consumer experience at our malls.

The future of the mall:
  • As consumers switch from offline to online, malls need to find alternative tenants to complement traditional retail tenants
  • Malls are being recycled into mixed-use spaces that incorporate living, shopping, working and entertainment facilities under one roof
  • Anchor tenants of the future will not only be sellers of goods
  • Health and wellness, education services and co-working solutions are already leasing large tracts of mall space
  • Our focus remains on the fundamentals in our portfolio:
Old fundamentals
New fundamentals

As offices in Waterfall City densify, this increases shoppers at the Mall of Africa, creating an improved shopper ecosystem. We have seen the benefit since PwC occupied space in Waterfall City, with numbers increasing at the mall.

Office and mixed-use

Our top Waterfall office and mixed-use buildings by value

For property details please click on the picture

PwC Tower

Cell C Campus

Lynnwood Bridge Offices including Aurecon

PwC Tower

Total PGLA
48 615m2

R1.9 billion

Our 75.0% share of valuation
R1.4 billion

Value per m2
R38 829

Silver United States Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) certification

Office and mixed-use 2019   Restated  
Number of properties 22   20    
Total investment property (R’000) 7 239 506   7 214 718    
Value as % of our total South African portfolio 37.8   38.3    
Total rental income (R’000) 739 065   650 477    
PGLA (m2) 264 188   258 974    
Value per PGLA (R/m2) 27 380   27 859    
Weighted average gross monthly rental (R/m2) 208   196    
Historical average annualised property yield (%) 6.7   6.5    
Weighted average rental escalation^# (%) 7.7   7.8    
Weighted average escalation on new/renewed leases^# (%) 7.9   7.8    
Weighted average rental reversions^ 2.8   (17.2)   
Weighted average lease period^ (years) 6.8   7.8    
Vacancy based on PGLA (%) 11.8   16.7    
Retention success rate (%) 89.4   61.9    
Arrears (%) 0.3   0.2    
# Rental escalations excluding rates.
^ Based on PGLA.
* Restated due to the deconsolidating of Nieuwtown and Majestic.

Top five tenants
  Attributable gross rental
as a % of total gross rent
PwC 5.6  
Cell C 5.3  
Aurecon 5.1  
Transnet 3.5  
Adams & Adams 2.9  
    Attributable PGLA
as a % of total PGLA
  PwC 5.6  
  Cell C 5.3  
  Aurecon 5.1  
  Transnet 3.5  
  Adams & Adams 2.9  

Given the oversupply of office space in key nodes such as Sandton, tenants are spoilt for choice and well-informed about current vacancies and rental price trends. With office space widely available, landlords are offering incentives such as reduced rentals and subsidised tenant installations to fill premises. Negotiations with new tenants have become protracted and more challenging. We compete by demonstrating the value of relocating to Waterfall and, most importantly, focus on cost of occupancy for our tenants. To retain existing tenants, our focus is on building long-term relationships and constantly staying abreast of their changing property and business needs.

Our focus is on the tenant experience, stronger sales teams and fostering our tenant relationships (see sustainability, as our unique value propositions.

Current office and mixed-use trends include growing demand for flexibility in the workspace. Tenants are increasingly looking at precincts that are close to amenities and transport.

The quality of our office buildings is evident in the diagram below:

Office grading by PGLA (%)

Light industrial

Our top Waterfall industrial buildings by value

For property details please click on the picture


Massbuild Distribution Centre

BMW Group SA Regional Distribution Centre


Total PGLA
37 937m2

R426.4 million

Our 100.0% share of valuation
R426.4 million

Value per m2
R11 239


Light industrial 2019   2018  
Number of properties 11   6  
Total investment property (R’000) 1 637 924   1 286 827  
Value as % of our total South African portfolio 8.6   7.4  
Total rental income (R’000) 156 860   107 598  
PGLA (m2) 168 609   146 093  
Value per PGLA (R/m2) 9 714   8 808  
Weighted average gross monthly rental (R/m2) 72   70  
Historical average annualised property yield (%) 7.3   5.4  
Weighted average rental escalation^# (%) 5.3   4.9  
Weighted average escalation on new/renewed leases^# (%) 8.4   0.8  
Weighted average lease period^ (years) 10.0   11.4  
Vacancy^ (%) 3.2   5.3  
Retention success rate (%) n/a   n/a  
Net arrears (R’000)    
# Rental escalations excluding rates.
^ Based on PGLA.

Top five tenants
  Attributable gross rental
as a % of total gross rent
Massmart 2.4  
Amrod 2.1  
BMW 2.1  
Cummins 0.7  
Torre Industries 0.6  
    Attributable PGLA
as a % of total PGLA
  Massmart 2.4  
  Amrod 2.1  
  BMW 2.1  
  Cummins 0.7  
  Torre Industries 0.6  


Waterfall Logistics Hub is ideally positioned in Gauteng for modern and efficient warehousing. In the last financial year, five new warehouses were completed. Another new lease agreement was signed, with construction starting post-year end. Our logistics portfolio has a long-weighted average lease expiry profile of ten years and is supported by quality tenants.

For more information on our Waterfall Logistics Hub – Gauteng’s logistics hub of choice, see Developments at Waterfall.


For property details please click on the picture

City Lodge – Lynnwood, Pretoria

City Lodge – Waterfall City, Waterfall

City Lodge – Lynnwood, Pretoria

Total PGLA
7 946m2

R224.9 million

Our 100% share of valuation
R224.9 million

Value per m2
R28 303

We have two hotels in our portfolio, both leased to City Lodge. The City Lodge in Waterfall City provides an essential service to our local and international corporate stakeholders and remains in high demand. As Waterfall City has started to grow and densify, there is a need for more hotel offerings. We are currently developing a ‘new concept’ four-star Courtyard Hotel for City Lodge in a mixed-use precinct, adjacent to the Mall of Africa and the new residential development, Ellipse.

Hotel 2019   Restated*
Number of properties 2   2    
Total investment property (R’000) 346 873   327 828    
Value as % of our total South African portfolio 1.8   1.7    
Total rental income (R’000) 38 213   34 880    
PGLA (m2) 13 690   13 690    
Value per PGLA (R/m2) 25 338   21 911    
Weighted average gross monthly rental (R/m2) 218   204    
Historical average annualised property yield (%) 7.4   7.3    
Weighted average rental escalation^# (%) 7.0   7.0    
Weighted average escalation on renewed leases^# (%) 7.0   –    
Weighted average lease period^ (years) 8.7   3.9    
Vacancy^ (%)   –    
Retention success rate (%) 100.0   n/a    
Net arrears (R’000)   –    
# Rental escalations excluding rates
^ Based on PGLA.
* Restated due to the deconsolidating of Nieuwtown and Majestic.

Our South African portfolio

Property Location Province Valuation
Office and mixed-use       7 239 506 264 188 n/a 208 30 584  
Multi 2 Eglin Sunninghill Gauteng 151 503 25 525 455 335 95 20 732  
Multi Allandale building Waterfall Gauteng 422 729 15 359 2 984 637 194  
Multi Brooklyn Bridge Office Park Pretoria Gauteng 490 000 23 525 4 132 529 207 3 537  
Single Cell C Campus Waterfall Gauteng 1 028 004 43 890  
Multi Gateway West Waterfall Gauteng 344 021 13 803 2 184 505 201 2 947  
Single Transnet Waterfall Gauteng 630 743 24 354  
Multi Lynnwood Bridge Pretoria Gauteng 957 165 27 613 7 569 306 275 138  
Single Lynnwood Bridge – Aurecon Pretoria Gauteng 796 093 19 104  
Multi Maxwell Office Park* Waterfall Gauteng 548 096 18 423 3 901 951 212  
Single Novartis Waterfall Gauteng 237 105 7 982  
Single PwC Tower** Waterfall Gauteng 1 415 730 36 461  
Multi Waterfall Corporate Campus* Waterfall Gauteng 218 317 8 149 981 455 199 3 230  
Retail       9 918 911 304 337 68 866 827 236 10 572  
Multi Brooklyn Mall# Pretoria Gauteng 694 000 18 778 5 667 671 313 676  
Multi Eikestad Mall^ Stellenbosch Western Cape 930 880 38 227 6 439 871 188 3 958  
Multi Garden Route Mall George Western Cape 1 495 400 53 816 10 427 221 194 8  
Multi Glenfair Boulevard Pretoria Gauteng 492 026 15 951 3 794 095 247 575  
Multi Lynnwood Bridge – retail Pretoria Gauteng 377 089 11 378 3 016 781 270 222  
Multi Mall of Africa^ Waterfall Gauteng 4 358 165 99 770 28 042 330 289 2 802  
Multi MooiRivier Mall Potchefstroom North-west 1 235 500 49 696 8 561 531 180 2 088  
Multi Waterfall Corner Waterfall Gauteng 202 985 9 582 1 708 409 183 243  
Multi Waterfall Lifestyle Waterfall Gauteng 132 866 7 139 1 208 918 169  
Light industrial       1 637 924 168 609 72 5 262  
Single Amrod Waterfall Gauteng 426 367 37 937  
Single BMW Group South African regional distribution centre Waterfall Gauteng 282 871 31 987  
Single Cummins Southern Africa Regional Office* Waterfall Gauteng 117 587 7 649  
Single Dimension Data Waterfall Gauteng 97 866 8 291  
Single Dis-Chem warehouse Waterfall Gauteng 85 848 8 518  
Single Massbuild distribution centre Waterfall Gauteng 412 404 50 033  
Single Midi warehouse Waterfall Gauteng 39 804 5 262 5 262  
Single Pirtek Waterfall Gauteng 29 868 2 815  
Single Superga warehouse Waterfall Gauteng 41 983 4 710  
Single Torre Industries$ Waterfall Gauteng 77 000 9 357  
Single Zimmer Biomet* Waterfall Gauteng 26 326 2 050  
Hotel       346 873 13 690 218  
Single City Lodge Hotel Lynnwood Pretoria Gauteng 224 893 7 946  
Single City Lodge Hotel Waterfall City Waterfall Gauteng 121 980 5 744  
# 25.0% share
* 50.0% share
** 75.0% share
^ 80.0% share
$ Classified as held for sale

Waterfall City masterplan

Nearly a decade ago, we purchased the development rights in Waterfall City (west of the N1 motorway) and the Waterfall Logistic Hub (east of the N1 motorway). The approved bulk associated with the development rights is spread and managed across 12 individual land parcels with the remaining developable bulk, at 30 June 2019, as follows:

For property details please click on the picture




52 692m2

68 080m2

593 101m2

13 321m2

50 640m2

777 834m2


Despite a tough economic environment, we continued to receive corporate enquiries for Waterfall for opportunities that converted into new developments and signed leases with prominent tenants that include ContinuitySA, Pirtek, Superga and Zimmer Biomet. This highlights Waterfall’s emerging prominence as a suitable location for businesses wanting to avoid traffic congestion and poor public transport services, as well as businesses that want to consolidate existing offices in Pretoria and Johannesburg into a location equidistant for employees. Waterfall has 948 786m2 (2018: 957 008m2) of developable bulk remaining.

The construction sector continues to be impacted by the slow growth in the economy and the capacity and capability of the industry continues to decline. In response we have improved our tenant vetting process and implemented an online procurement portal.

Six reasons to live, work, play in Waterfall

Six reasons why Waterfall, where living works, is becoming
Gauteng’s business destination of choice:

accessibility and
visibility, all roads
lead to Waterfall
design ensures an
efficient and
convenient quality
of life
facilities that
support a
  Committed to
protecting our
facilities and
  Designed as a
and bicycle-friendly
  A green
philosophy is
embedded in the
urban design


Where living works

Waterfall spans 2 200ha and is the latest growth node of Gauteng, the economic hub of the African continent. Poised to be the new city of Gauteng, the largest urban concept development, Waterfall offers the ultimate live-work-play environment. Waterfall’s location is unparalleled, not only is it situated on the business corridor between Johannesburg and Pretoria, but it is supported by two Gautrain bus routes, private schools and a private hospital in addition to featuring world-class lifestyle and leisure amenities on its doorstep.


Waterfall City

An integrated city that works

The heart of the precinct is Waterfall City, with current remaining development bulk of 777 834m2 (2018: 778 023m2) zoned for retail, office, industrial, hotels and residential developments. Waterfall City is built around the super-regional Mall of Africa and its adjoining 1.3ha Waterfall Park.

The concept behind Waterfall City is to create a mixed-use development where people can live, work, play in a sustainable, safe and functional environment. The precinct was planned as a greenfield development, allowing for the best urban design principles to determine sufficient and efficient infrastructure, services and open public spaces in addition to facilities that make modern city liveable and functional. Due to all developments being new, the focus is on green efficient design and smart technology.

In November 2018, we launched Ellipse Waterfall, which is the city’s first high-rise residential development and that complements both the commercial and retail offerings in Waterfall. We believe that the residential component, will further densify the city and contribute to the live, work, play environment.

Waterfall Logistics Hub

Gauteng’s logistics hub of choice

The Logistics Hub, situated east of the N1 highway is ideally positioned in Gauteng for light industrial tenants wanting to capitalise on its central location and accessibility. The Waterfall Logistics Hub with 170 952m2 (2018: 178 985m2) of remaining development bulk, hosts only light industrial tenants, making it an attractive option to consolidate warehousing with sizeable office space.

During the past year, we developed three generic midi warehouses in the Waterfall Distribution Campus resulting in leases being concluded with Pirtek and Superga. The third building of 5 262m2 is our only vacant speculative industrial building. With the recent completion of the Zimmer Biomet facility and with the current construction of a warehouse for a blue-chip tenant, LP8 north will be built out with only the expansion option’s for BMW and Zimmer Biomet remaining.

Developments at Waterfall
Developments under construction 929 469 527 592  
Development rights 500 428 901 428  
Infrastructure and services 787 682 685 875  
Attacq/Sanlam joint venture (Waterfall Junction) 111 620 143 803  
Total 2 329 199 2 258 698  

Waterfall Junction

A joint venture between Sanlam Life Insurance Limited (Sanlam) (76.43%) and Attacq (23.57%), has given us access to a further 686 054m2 of industrial developable bulk in Waterfall. We have been appointed as the development, property and asset manager for the joint venture and have the right to increase our shareholding to 50.0%. The development of Waterfall Junction has been activated with the design and commencement of a bulk water pipeline, as well as internal roads and other infrastructure. This infrastructure project provides the opportunity to commence with construction of light industrial buildings.

Financial overview

The impact of this key driver on the group’s distributable earnings are the holding costs relating to developments under construction, infrastructure and development rights. Holding costs include rates and taxes, marketing, security, and property owners’ association levies. For the year ended 30 June 2019, the impact thereof on DEPS was negative 3.8 cents (2018: 1.4 cents).

The total asset value of Developments at Waterfall, including the value of the Attacq Sanlam joint venture (Waterfall Junction), remained largely unchanged at R2.3 billion (2018: R2.3 billion). While these assets do not contribute positively to distributable earnings, it is a platform for future economic benefits via the development of new properties.

Developments under construction

Developments under construction increased to R929.5 million (2018: R527.6 million) as a result of capital expenditure and fair value adjustments based on the progress of the developments. The value of developments under construction is based on external valuations performed by Mills Fitchet and Sterling, adjusted for costs still to be incurred to final completion.

The following developments were under construction as at 30 June 2019 for a total of 72 353m2 of bulk of which our attributable share of the total is 48 338m2.

Property name Land
% pre-let
value on
value at
30 Jun
Waterfall City                
Deloitte head office* 10 Q3 FY20 21 250 100.0 738 247 812 075 458 550  
The Ingress – PSG Wealth 10 Q1 FY20 4 371 100.0 119 529 129 612 101 189  
The Ingress – Building 2 10 Q2 FY20 4 360 0.0 118 597 106 241 57 084  
Waterfall Corporate Campus – ContinuitySA* 10B Q2 FY20 2 765 100.0 62 856 81 031 29 468  
Nexus Waterfall Courtyard Hotel 10 Q2 FY21 6 236 100.0 176 535 200 091 37 634  
Waterfall Point^ – building 1, inventory 15 Q2 FY20 2 339 79.8 pre-sold 60 580 68 904 45 650  
Waterfall Point – building 2, investment property 15 Q2 FY20 2 339 100.0 60 580 59 777 53 114  
Waterfall Point^ – building 3, inventory 15 Q2 FY20 2 339 90.0 pre-sold 60 580 65 489 5 487  
Waterfall Point – building 4, investment property 15 Q2 FY20 2 339 100.0 60 580 61 133 54 274  
Total     48 338 89.5 1 458 084 1 584 353 842 450  
Value provided above reflect Attacq’s undivided share in the building: *50.0%.
# Estimated PGLA for Attacq’s attributable share of development. Subject to change upon final re-measurement post completion.
^ The estimated value on completion of pre-sold and inventory is indicative of sales proceeds and not of an external valuation.
Deloitte head office – land parcel 10

The Deloitte head office development is a 50/50 joint venture between ourselves and Atterbury. The total cost of the project is R1.5 billion. The development is targeting a silver USGBC, LEED (as built and commissioning) certification and is due for completion in March 2020.

The Ingress – land parcel 10

The Ingress is a five-building office park prominently located at the entrance to Waterfall City. Phase 1 consists of offices for PSG Wealth, which took occupation on 1 August 2019, as well as a speculative building. The remaining three buildings (approximately 11 700m2) will be developed in a phased approach subject to market demand. The total development cost is estimated at R570.0 million. The development is targeting a four-star GBCSA (by design and as built) certification.

Waterfall Corporate Campus Office Park – land parcel 10B

Waterfall Corporate Campus is a 50/50 joint venture with Zenprop. The development will comprise seven office buildings with a centrally located communal facility that includes a conference facility and restaurant. The estimated total PGLA for this development is 35 000m2, with an approximate total development cost of R880.0 million. The first three buildings (16 300m2) are completed and construction is making good progress on the next building which will be occupied by ContinuitySA. The remaining buildings will be developed in a phased approach subject to market demand. The development is targeting a four-star GBCSA (by design and as built) certification.

Nexus Waterfall – land parcel 10

Nexus Waterfall comprises three office buildings and a ‘new concept’ four-star Courtyard Hotel, which is leased and will be operated by the City Lodge Hotel Group. The total PGLA is estimated at 32 000m2 at an estimated total development cost of R925.0 million. Construction of the 10-storey, 168-key hotel has commenced at an approximate development cost of R1.3 million per key. Construction of the remaining precinct will be in a phased approach subject to market demand. This development was previously to be developed as a 50/50 joint venture, whereas we are now the sole developer. Each building is targeting a minimum four-star GBCSA (by design and as built) certification.

Waterfall Point – land parcel 15

Waterfall Point is an A-grade office park with four buildings of approximately 2 350m2 each. The office park is a sectional title scheme which caters for both investment by us and businesses that wish to invest in their own premises. We currently hold buildings as investment property which are 100.0% pre-let. Two of the buildings have been classified as inventory, with 84.9% of PGLA pre-sold. Recognition of the revenue and cost of sales on the pre-sold inventory is on a percentage completion basis.

Development rights

We currently hold 948 786m2 (2018: 975 008m2) of development rights, zoned for retail, office, industrial, hotel and residential. Development rights are the notarially secured leasehold rights held by Attacq Waterfall Investment Company Proprietary Limited (AWIC), a 100.0% subsidiary of Attacq. We secured the majority of retail, commercial and industrial development rights in Waterfall and have recently begun construction of the first residential scheme in the Waterfall precinct.

The external valuation, performed by Sterling, in respect of the valuation of the Waterfall development rights is carried out using a residual land valuation model on a freehold, fully serviced basis.

The independent valuation is then adjusted downward to take into account, inter alia, the costs required to complete the servicing of the development rights as well as the obligations pursuant to the leasehold nature of the development rights.

During the June 2019 financial year the development rights valuation was reduced by R384.1 million (2018: R48.9 million). The valuation assumptions, reviewed on a semi-annual basis, were revised in light of low business confidence, the prevailing macroeconomic conditions and a more conservative roll out period was assigned to the remaining developable bulk.

Progress in developing Waterfall’s available bulk is shown below:
The Waterfall bulk is spread over 12 land parcels (LP):
LP number Description Main
bulk m2
Completed Bulk
sold m2
bulk m2
Waterfall City                  
LP10 Waterfall City Office 882 760 195 912 56 715 29 407 40 825 559 901  
LP10A Corporate City Office 150 000 150 000  
LP10B Corporate Campus Office 35 000 8 454   2 765 6 282  
LP12 Capital City Office 48 330 17 500 48 330  
LP15 Lifestyle Estate Woodmead Retail 64 944 40 826 24 118  
LP20 North Office Park Office 4 194 4 194  
LP21 Landmark Park Industrial 56 999 43 678 13 321  
Subtotal     1 242 227 288 870 60 909 46 907 67 708 777 834  
Waterfall Logistics Hub                
LP3 Convenience Corner Waterfall Retail 15 000 15 000  
LP8 Distribution campus Industrial 184 456 128 254 20 921 2 433 8 033 24 905  
LP9 Logistics precinct Industrial 196 455 7 695 52 701 7 695 128 365  
LP22 Commercial district Office 83 544 37 685 28 177 17 682  
LP24 Factory depot Industrial 154 250 154 250  
Subtotal     633 795 173 634 101 799 179 378 8 033 170 952  
Total remaining bulk allocated to Attacq   1 876 022 462 504 162 708 226 285 75 741 948 786  
Attacq Sanlam joint venture Waterfall Junction Industrial           686 054  
Total remaining bulk               1 634 840  
Infrastructure and services

The net increase, excluding non-current assets held for sale, of R115.3 million (2018: net decrease of R64.0 million) in the value of infrastructure and services, held at cost, compared to the prior year is, inter alia, as a result of infrastructure and pre-development spend of R127.1 million, offset against the reallocation to developments under construction of R11.8 million.

During the year, we continued to invest in bulk infrastructure to unlock the full potential of our land parcels; for example, the installation of an electrical substation to increase the electrical supply to the industrial developments as well as a number of other infrastructure-related projects.

A holistic approach is followed in the planning and development of infrastructure, taking into account the entire Waterfall precinct. These include large projects with the potential to make a substantial impact on the growth and development potential of Waterfall.

Completed buildings

During the year, seven buildings were completed in Waterfall, bringing the total South African portfolio PGLA to 750 825m2 (2018: 722 731m2). Our attributable share of the total newly completed 42 615m2 PGLA is 27 701m2.

Completed properties Lease
Waterfall City            
Waterfall Corporate Campus – Accenture+ 1 December 2018 1 985 3 970 100.0 67 126    
Waterfall Corporate Campus – Building 2+ 1 August 2019 3 230 6 460 52.4 69 093    
Waterfall Logistics Hub            
Cummins Southern Africa Regional Office+ 1 March 2019 7 649 15 298 100.0 117 587    
Speculative midi warehouse 5 262 5 262 0.0 39 804    
Pirtek 1 May 2019 2 815 2 815 100.0 29 868    
Superga 1 June 2019 4 710 4 710 100.0 41 983    
Zimmer Biomet+ 1 August 2019 2 050 4 100 100.0 26 326    
Total   27 701 42 615 75.5 391 787    
+ Attacq has a 50.0% ownership.
* Net of costs to be incurred until final completion.

Developments pipeline

Office and light industrial Sector Land parcel Anticipated
Pre-let %
based on
total PGLA
Waterfall City                
Waterfall Corporate Campus – building 4+ Office and
10B Tenant
2 263  4 526   
Waterfall Logistics Hub                
Blue-chip tenant Light
8 July 2019 Q4 FY20 4 757  4 757  100.0  
Total         7 020  9 283  67.8%  
* Estimated PGLA of development subject to change upon final re-measurement post-completion and Attacq has a 50.0% ownership.
+ Attacq has a 50.0% ownership.
Ellipse Waterfall – land parcel 10

Ellipse Waterfall is a 50/50 joint venture with Tricolt. This development is poised to redefine the live, work, play ethos in Gauteng, and this is the first high-rise residential development in Waterfall City. Ellipse Waterfall comprises four deluxe high-rise towers, named after celebrated astronomers: Newton, Kepler, Cassini and Galileo. The development has sold over 80.0% of the 272 apartments in the Newton and Kepler towers of phase 1, which equates to a total value of over R565.0 million in sales to date. A waiting list for the final two towers is steadily growing in anticipation of the phase 2 launch in Q2 FY20.

Featuring innovative design, Ellipse Waterfall has been carefully curated with the user experience in mind. It is the combination of luxury, aesthetics and functionality. Each tower’s height differs, Newton has ten storeys, Kepler has 11 storeys, Galileo has 12 storeys and Cassini has 16 storeys. The result is views from every apartment – whether you are looking out onto the Magaliesberg or across to the Sandton skyline.

Located on a prime city gateway site, every aspect of this R1.25 billion development resonates quality – from the amenities and state-of-the-art security systems to the outstanding architecture and finishes.


We are mindful of the oversupply of office and industrial space from other developers in several nodes but encouraged by the level of interest in Waterfall area. Accordingly, our development strategy remains prudent and based on market demand, such as smaller warehouses with larger office components.

In FY20, we will maintain a level of stock for tenants requiring space on short notice. We will also focus on finding suitable tenants for our speculative warehouse, develop the first phase of infrastructure at Waterfall Junction and complete the first phase of our popular Ellipse residential development before moving on to the remaining phases.

With seven developments under construction, over 70 000m2 due for completion in FY20 and a further 6 200m2 plus 272 units in the Ellipse phase 1 in FY21, Waterfall is a hive of activity. In tandem, our sustainability and smart-city strategy underpin the significant infrastructural investment that is entrenching Waterfall as a prominent business and now residential location in Gauteng.


MAS provides us with a growing stream of euro-denominated dividends, underpinned by a growing portfolio of income-generating properties and a strong acquisition and development pipeline. Melt Hamman joined the MAS board of directors on 12 December 2018.

The investment in MAS contributed R189.1 million (2018: R137.5 million) to the group’s distributable earnings, including cash dividends received of R185.6 million (2018: R151.1 million).

Our shareholding in MAS was unchanged at 22.8% (2018: 22.8%). The market value of our investment based on the MAS share price as at 28 June 2019 of R20.90 (2018: R21.00) equates to R3.2 billion (2018: R3.1 billion), which is in line with our equity-accounted investment at 30 June 2019 of R3.2 billion (2018: R3.1 billion).

Where MAS invests and develops

1 MAS’ share of the income-generating portfolio’s passing rent.

MAS is a commercial property investor, developer and operator listed on the main board of the JSE. It is also listed and admitted on the Euro-MTF market of the Luxembourg Stock Exchange.

MAS’ strategy is to generate sustainable and growing distributable earnings per share by acquiring and developing retail, office, industrial, logistics, hotel and residential assets in Central and Eastern Europe (CEE). To facilitate its strategy, MAS has partnered with Prime Kapital Limited, a management team with exceptional development, investment and financing experience in these markets.

The impressive performance and growth of the CEE portfolio to date, led the MAS board to consider that the continued expansion into CEE, combined with an orderly and disciplined divestment of the Western European assets, phased in to maximise realisable value, is the most appropriate strategy for the MAS group. The increased geographical focus in the higher growth CEE markets, with a predominant focus on retail, provides the MAS group with the best opportunity to continue to meet its long-term objectives of sustainable growth in distributable earnings per share. Currently 41.8% of MAS’ investment property portfolio is in CEE.

MAS achieved a 59.6% increase in net rental income to EUR51.6 million and a 41.9% increase in DEPS from EUR6.35 cps to EUR9.01 cps, driven by acquisitions of investment property, its Prime Kapital investment joint venture and its real estate equity securities portfolio. Investment property, including assets held for sale, increased by 52.4% to EUR964.7 million from EUR632.8 million.

MAS’ management focus on the recycling of capital out of mature assets into higher-yielding properties resulted in the disposal of its low-yielding hotel assets at New Waverley, Edinburgh, for EUR43.3 million at yields of 4.1%. During the year, the following income-producing properties were acquired, adding a total of 178 240m2 GLA to the property portfolio.

Property Location GLA m2 Acquisition
Flensburg Galerie Shopping Centre Flensburg, Germany 25 540  62.6  
Militari Shopping Centre Bucharest, Romania 56 200  95.0  
Atrium Mall Shopping Centre Arad, Romania 28 600  40.5  
Romania retail portfolio Nine properties, Romania 67 900  109.1  
Total   178 240  307.2  

The Prime Kapital development joint venture pipeline comprises ten projects with an estimated total development cost of EUR783.0 million and GLA of 615 000m2. Seven of these assets have either commenced with construction or are at design and permitting stage and two are expected to be completed by December 2019. During the year, MAS announced an extension of the development joint venture by an additional two years to 2025.

Plans are underway to extend and refurbish the retail assets of the investment joint venture between MAS and Prime Kapital, namely Nova Park (Poland), Burgas Mall and Stara Zagora Mall (both Bulgaria) and Militari Shopping Centre. Approximately 57 000m2 of GLA can be added to improve the fashion and leisure offerings of the centres and strengthen their regionally dominant positions.

We have the following hedges in place for expected future MAS dividends:

MAS dividend period Anticipated timing
of receipt
Fixed rate 
Final FY19 October 2019 5.1 18.10  92.3  
Interim FY20 March 2020 2.7 17.29  46.0  

For further information in respect of MAS’ results, refer to the MAS website at

Outlook on MAS

MAS has set itself a three-year target of growing dividends per share by 30.0% for the period ending 30 June 2022 from the current distribution level of EUR8.75 cps.

MAS has a well-funded balance sheet, a strong development and acquisition pipeline, and access to an experienced development partner with an exemplary track record in CEE.

Our development team

Our development team

Back: David Oosthuizen, Lourens du Toit, Martin du Plessis, Giles Pendleton, Nico Barnard, Enzo Oosthuizen

Front: Miron Naidoo, Mpumi April and Thomas Fuller


During the year, our Rest of Africa retail investments generated distributable earnings of R86.2 million (2018: R59.8 million). As at 30 June 2019, the value of our Rest of Africa retail investments was R820.1 million (2018: R1.2 billion) representing 3.0% (2018: 4.2%) of its total gross assets (including cash balances held in AIH International Limited (AIHI), a wholly owned subsidiary of Attacq). Following the Manda Hill Shopping Centre disposal post-year end, this reduced to below 2.0% net of cash held by AIHI (discussed below).

R’000 June 2019 % June 2018 %  
Attacq offshore cash on hand 180 624 22.0 68 238 5.9  
Ikeja City Mall (equity and shareholder loan) 276 899 33.8 305 173 26.3  
AttAfrica (shareholder loan) 362 545 44.2 787 304 67.8  
Total Rest of Africa retail investment 820 068 100.0 1 160 715 100.0  

Our Rest of Africa retail investment comprises:

  • Cash held by AIHI of R180.6 million (2018: R68.2 million)
  • A 25.0% shareholding in Gruppo Investment Nigeria Limited (Gruppo), the owner of Ikeja City Mall, Nigeria.
  • A 31.8% shareholding in AttAfrica, which is invested in three retail properties in Ghana and Manda Hill Shopping Centre, Zambia

Our strategy, which is aligned with its co-shareholders, is to seek an orderly disposal of these assets and recycle proceeds into interest-bearing debt. Progress has been made in implementing this strategy with the exit of Achimota Retail Centre (Accra, Ghana) during the year and Manda Hill Shopping Centre (Lusaka, Zambia) subsequent to year end. Both disposals were based on the 31 December 2018 carrying values for these properties.

Our investment in AttAfrica, through its shareholder loan, amounted to R362.5 million (2018: R787.3 million). An impairment of R418.5 million (2018: R25.9 million) was recognised against the loan in the current year due to the increase in the negative net asset value position of AttAfrica offset by a 3.0% weakening of the rand against the US dollar. During the year, R89.5 million of cash interest was received from AttAfrica.

The group’s equity-accounted investment into and loan to Gruppo totalled R276.9 million (2018: R305.2 million). The decrease in the investment value is as a result of an impairment of R49.0 million (2018: R25.2 million) offset by a 3.0% weakening of the rand against the US dollar. During the year R14.4 million of cash interest was received from Gruppo.

At 30 June 2019, the retail properties in which we have an interest, is as follows:

Asset Total
Accra Mall, Accra 21 311 15.0  
Kumasi City Mall, Accra 15 534 31.0  
Ikeja City Mall, Lagos 22 223 25.0  
Manda Hill Mall, Lusaka 42 002 15.9