Government pension fund now owns Deloitte building in Midrand after R1.7bn deal

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The Deloitte building in Midrand. Photo: Atterbury
The Deloitte building in Midrand. Photo: Atterbury

The Public Investment Corporation (PIC), on behalf of the Government Employees Pension Fund (GEPF), has taken over the office building that houses Deloitte in Waterfall in Midrand, Gauteng.

It is paying R1.7 billion as part of the deal, which includes 100% of the leasehold rights, the office building and letting enterprise with Deloitte as the anchor tenant.

An aerial view of the Deloitte building in Midrand. Photo: Atterbury

The building is currently owned by property companies Attacq and Atterbury, which each – via subsidiaries – has an equal 50% stake.

It which was completed last year, comprises 42 500m² and has office space for 5 000 people The premises consist of a ground floor with six stories of offices and four basement parking levels including nearly 2 000 parking bays. 

Inside the Deloitte building. Photo: Atterbury

"The acquisition will be beneficial to our client [GEPF], as it is underpinned by a strong lease covenant for more than ten years,"  Abel Sithole, PIC CEO, said in a statement. "These cash flows will be accretive to the GEPF’s current portfolio from an income and capital growth perspective."

The Deloitte building in Midrand. Photo: Atterbury

He added that the acquisition of the environmentally friendly property supports the PIC’s drive for investments "that are underpinned by ESG [environmental, social and governance] factors".

Earlier this week, the PIC announced that it plans to sell 70 properties - including malls and office buildings – which are currently held by the GEPF.

The properties include Edcon's former training campus with hotel and conference facilities in Ormonde, Johannesburg, as well as a tenanted industrial unit in Lyttelton Manor Pretoria, the Palm Grove Shopping Centre in Durbanville, Cape Town and the Village Market Shopping Centre in Westville, Durban.

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