Competition Commission Approves R1.07 Billion Deal for AWIC to Acquire 20% of Mall of Africa

The Competition Commission has given the green light to a significant transaction involving the Attacq Waterfall Investment Company (AWIC). The deal, valued at R1.07 billion, enables AWIC to acquire an additional 20% stake in the Mall of Africa.

The Mall of Africa, which opened on April 28, 2016, is a landmark development in South Africa. It holds the title of the country’s largest single-phase mall development and stands as the centrepiece of Waterfall City. With over 130,000 square meters of retail space and more than 300 shops, it is a massive retail hub.

A notable feature of the mall is its impressive sustainability credentials. It houses the largest rooftop solar PV system in the southern hemisphere and boasts the world’s largest integrated rooftop PV/Diesel hybrid solution.

As of December 31, 2023, the Mall of Africa has shown robust growth, with a compounded annual trading density growth of 16.1% over the past three years. Its rent-to-turnover ratio stands at 7.5%, reflecting its strong performance.

Originally developed and co-owned by the Atterbury Property Group, the mall was a R5-billion project. In May, Attacq, a JSE-listed Real Estate Investment Trust (REIT), announced that its subsidiary, AWIC, had purchased the remaining 20% stake in the Mall of Africa from the Atterbury Group. Before this acquisition, AWIC already held an 80% stake in the mall, underscoring Attacq’s strategic role in the development of Waterfall City.

On Thursday, the Competition Commission approved the deal, recommending that the Tribunal unconditionally endorse the transaction. According to the Commission, the acquisition is unlikely to significantly reduce or hinder competition in any market and does not present any public interest concerns.

Attacq’s latest annual report highlights the mall’s positive retail trade outcomes, including a 91.6% increase in turnover rental and a 71.4% rise in third-party income. The Mall of Africa has also become a preferred venue for exhibitions and advertising.

The report further detailed that rental income saw a 10.8% growth for the year, driven by the introduction of 21 new brands, 16 store upgrades, and the renewal of 33 leases.

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