Atterbury recently took over the total shareholding in The Grove Mall of Namibia, its flagship development in Namibia. We spoke to Armond Boshoff about the decision to increase ownership in this prime asset in Windhoek
What led to the deal to bring The Grove into the fold completely? What are the benefits of having a 100% stake?
The Grove is our flagship asset in Namibia and one of the landmark shopping centres in Windhoek. The mall is trading extremely well and thus when the opportunity presented itself we took the investment decision to acquire the asset outright. Attacq Limited decided to sell their 25% shareholding in The Grove Mall of Namibia and as we had pre-emptive rights, we exercised these. Earlier this year, our remaining partners indicated that they want to dispose of their shares in the asset, which we then also acquired.
Atterbury also developed Dunes Mall in Walvis Bay, in which it has a 54% ownership stake. How have these two Namibian malls been performing since you completed the development?
The Grove Mall’s trading has exceeded our expectations and is one of the best performing shopping centres in our portfolio. We will in fact look to extract further value from the mall, with potential future expansion, and increase the enjoyment factor for all visitors. Dunes Mall opened in late 2017, and has been trading satisfactorily. The final tenants have now opened their doors for trading and we expect this to have a positive impact on the general attractiveness of the centre as a meeting place in that specific coastal region of Namibia.
Are there big strategy changes coming in the management of the malls – anything you can share yet?
The day-to-day management will not be affected and we’ll look to expand Dunes Mall by building premises for Game. Further expansion opportunities are also being considered.
Does this mean that there will be an Atterbury office on the ground in Namibia, or will this be managed over the distance? What are the challenges associated with that?
We have mall management teams at both centres, as well as a property management team overseen by Broll Namibia. Furthermore, our asset management team is in control of the management of the Namibian portfolio from Pretoria, which is currently working well. We have a strong team, locally and in Pretoria, who manages the assets efficiently.
And are there plans for other developments in Namibia, now that these relationships are entrenched?
At this stage we are focusing our attention on managing the assets as efficiently as possible and on potential further development opportunities at The Grove and Dunes Mall.
