JSE-listed property groups Balwin and Attacq have teamed up in a bid to compel the Gauteng government to speed up upgrades to the K60 Midrand highway, which is key to their multibillion-rand projects in Waterfall City, arguing that the delays are pushing up costs and placing jobs at risk.
Attacq’s Waterfall project is made up of a 42ha logistics precinct which is centrally located between Pretoria, Johannesburg and Sandton.
Waterfall City has secured large-scale deals, delivering purpose-built developments. PwC, SAGE, Accenture, Deloitte, Novartis, BMW, Dis-Chem are among the leading brands that have made Waterfall City their home. The project is also home to the Mall of Africa, which according to Lightstone is the busiest mall in the country in terms of visits.
The Government Employees Pension Fund (GEPF) has recently invested R2.7bn, acquiring 30% of Attacq’s Waterfall Investment Company (AWIC).
Attacq, which is valued at R7.4bn on the JSE in its court papers, says delays in upgrading the project have a material impact on the costs of the project.
The company in 2017, together with the land’s owners, Witwatersrand Estates entered into an agreement with the Gauteng department of roads & transport, committing themselves — financially, and by way of land availability — to support the upgrade of the K60.
The two entities have ploughed millions of rand in advancing the upgrade. However, no tender has to date been issued to upgrade the highway, with the one awarded a few years back held up in court as the losing bidder challenges the award of the tender.
Attacq is responsible for the development of specific areas at the Waterfall Estate mainly focused around the Mall of Africa CBD and industrial portions east of the N1. The construction of that portion of the K60 is essential to the further growth and development of Waterfall City, in that it will connect Waterfall to an east-west transport corridor. Without it, further development is stymied, placing at risk 4,492 units planned for development by Balwin and, with it, thousands of jobs.
Balwin, while not a party to the 2017 agreement, has entered the fray in a bid to protect its own interests. SA’s specialist residential developer has also committed financially to Attacq in light of its extensive residential development interests in the area.
The company last year launched Munyaka, a R10bn lifestyle estate development at Waterfall City precinct in Midrand to meet demand for lock-up-and-go and secure living.
Balwin made an outlay of than R100m in infrastructure in the node, including the upgrade of Mia Road, named after the family that owns the land. Upon completion, Munyaka will comprise more than 5,000 apartments. The project, which is expected to be completed in 2028, is Balwin’s third development in Waterfall City.
Balwin in its court papers outlines the material risks its business faces should the upgrade continue being delayed.
“The total economic impact of the developments, namely the impact on the broader economy, is approximately R6.4bn. Balwin will also employ, in total, 18,292 people in respect of the projects, affecting R167m in wage taxes to be received by the state,” Balwin argues.
“The total value of the developments, namely the value of the units sold, is R4.8bn, totalling R39.8m in rates and taxes per year to be earned by the state once completed... Finally, the halt on the construction of the K60 affects the traffic flow into and around these developments, which is dependent on the construction of the K60.”
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