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PROPERTY
13
CONSTRUCTION WORLD
FEBRUARY
2015
in Atterbury, and 34% was held by the
Atterbury Trust. This started a generous
distribution of ownership in the company
and an energetic involvement with disad-
vantaged communities.
Van der Watt recalls:“Our biggest chal-
lenge initially was funding. Fortunately
Van Niekerk’s strong balance sheet secured
Atterbury’s early developments.”
From the outset, building and owning
buildings was a key focus for Atterbury to
ensure development profits and long term
capital gain.
“Our first development was the office of
the Auditor-General in Brooklyn, Pretoria.
As the portfolio expanded, new funding was
hedged using already completed buildings
as security,” explains Van der Watt.
In 2002, Atterbury co-founded Attfund,
an unlisted regional shopping centre fund
of which it owned 43%. Attfund was sold to
Hyprop in 2011.
Taking a confident
approach
Challenging economic circumstances emer-
ged for the SA property sector with the
global economic crisis in 2008. Banks were
withholding development funding. Despite
this, Atterbury secured a R1,3-billion loan
– the biggest for a private developer at the
time – to develop Lynnwood Bridge.
Contrary to the defensive strategies
many companies adopted at this time, Atter-
bury took a proactive, innovative approach
and concluded the largest property transac-
suburbs such as Northcrest, Ikwezi and Mbuqe
Extension. However, from 2015 onwards this
will be alleviated to some extent with a number
of developments focusing on middle-income
houses and gap houses planned and to be
approved. Currently, Mthatha is landlocked in
terms of housing developments as a result of
the peri-urban areas also termed ‘rurban’ areas
along the urban fringe. These transitional areas,
between rural and urban, are the constraints for
new developments as the city has been boxed
in by the peri-urban settlements.
The city’s economy is substantial as there
are at least 15 towns whose economy is linked
to that of Mthatha. The city supplies goods
and services to towns like Flagstaff, Mvezo
and Libode, where facilities that Mthatha offers
are not available, making Mthatha the key
economic hub in the region.”
She says at present Mthatha is abuzz
with a couple of new full title developments
underway. One developer who has made his
presence known in the city has completed
49 housing units which were quickly
sold out in a development called ‘The
Palms’ in the suburb of Ncambedlana.
“Another new housing develop-
ment in Ncambedlana, ‘Fernhill’ –
comprising 88 units and catering for
the medium income market, which
was also launched in 2013, is about
to commence construction, with
services already being installed.
“For investors there is a great
deal of opportunity in Mthatha and
surrounds because within the current
property market, not many in the
lower LSM groups can afford to buy,
making small apartments the ideal
investment to cater for this market.
The rental demand is also substantial
in this sector, with entry level rentals
houses with two or three bedrooms
achieving rentals in excess of R4 500
per month,” says Khumalo.
Mthatha’s historical town hall.
tion in SA to date. “In 2008, Atterbury also
acquired 1 730 000 m
2
of commercial prop-
erty development rights at Waterfall, which
will provide a consistent pipeline of develop-
ment profit for at least the next decade, with
1 400 000 m
2
of developable bulk available,”
notes Van der Watt.
Its focused, aggressive approach to
property
development,
supported
by
innovation,
creativity
and
a
strong
entrepreneurial spirit makes Atterbury SA’s
leading property developer, even in chal-
lenging markets.
“The global economic climate, slow SA
growth, increasing interest rates, declining
consumer
spending
and
challenges
surrounding government policy motivated
Atterbury to expand its focus to attrac-
tive regions on the African continent and
Europe,” explains Van der Watt.
Pioneering new markets
Atterbury has led the way for property devel-
opment in other African countries. “We are
focused on retail opportunities in African
countries outside South Africa,” reports Van
der Watt. “Several investors have partnered
Atterbury as developer to build a portfolio of
prized retail and commercial assets.”
In 2009, Atterbury acquired a 50% stake
in the Bagatelle land, Mauritius, where it
developed the first regional shopping centre
in Mauritius, which opened September 2011.
In Europe, Atterbury has compiled a
portfolio of direct, income-yielding and
capital growth investments and plans to
partner with a listed company to expand
this portfolio. Atterbury International is also
involved in a new £150-million mixed-use
development in Edinburgh, Scotland.
As a commercial real estate investor,
Attacq, formerly Atterbury Investment
Holdings, was listed on the JSE in 2013.
It focuses on sustainable capital apprecia-
tion through the development and owner-
ship of a balanced portfolio of properties
with contractual income streams. Attacq has
gross assets valued at more than R18,4-bil-
lion and presently has a market capitalisa-
tion of R14,7-billion.
Over 20 years, Van der Watt and Van
Niekerk have crafted and grown a leading
company and an exceptional team at Atter-
bury, nurturing a reputation of remarkable
credibility with a consistently high standard
of ethical business conduct.
Award-winning
performance
Atterbury’s developments, asset manage-
ment performance and social impacts have
won numerous industry awards for excel-
lence and innovation. Among these are
various construction awards for its prop-
erties, numerous PMR Diamond Awards
for ‘Best Developer’ (2003 - 2013) and the
Investment Property Databank (IPD) award
for best commercial and overall performer
for three consecutive years (2008 - 2011).
Unsurprisingly, both Van der Watt and
Van Niekerk are well-recognised for their
remarkable and ongoing contributions to
business and property.