South Africa's Attacq shares soar on deal to fund Waterfall city

JOHANNESBURG (Reuters) - Attacq on Monday said the Government Employees Pension Fund (GEPF) is planning to buy a 30% stake in its Waterfall investment firm for 2.8 billion rand ($156 million), sending shares in the South African commercial property group up 14%.

Attacq's shares were up 14.85% to 8.20 rand by 1345 GMT, on track for their biggest one-day jump in 26 months.

GEPF, represented by the government's Public Investment Corporation (PIC), Africa's biggest investment fund, will also inject a further 300 million rand into Attacq Waterfall Investment Company as a shareholder loan, Attacq said.

Attacq said the deal would help to fund the ongoing development rollouts in Waterfall city, one of the fastest growing areas in Johannesburg, reduce the group's gearing ratio and enhance its liquidity position.

Attacq will keep a 70% shareholding in Attacq Waterfall.

Waterfall city is a growing mixed-use development, which is home to shopping centres, including Mall of Africa, international audit firms alongside other blue-chip companies, schools, hotels and houses.

($1 = 17.9726 rand)

(Reporting by Nqobile Dludla. Editing by Jane Merriman)