Attacq, a JSE-listed company, has finalized a controversial R2.7bn deal with the Government Employees Pension Fund (GEPF) to finance the development pipeline in Midrand’s Waterfall City.
- The deal has ignited a heated debate among industry experts and stakeholders regarding the involvement of public pension funds in private property development projects.
- Critics argue that the GEPF’s investment in property development raises questions about the fund’s fiduciary responsibility to pensioners and whether it should prioritize more traditional, low-risk investment options.
- Proponents of the deal contend that investing in real estate can provide long-term returns and contribute to economic growth, job creation, and urban development.
- However, concerns have been raised about the potential concentration of risk and the impact of market volatility on the GEPF’s investment portfolio.
- Some experts argue that public pension funds should focus on their core mandate of providing financial security for retirees and caution against diverting funds into higher-risk ventures.
- The Attacq-GEPF deal highlights broader discussions about the role of pension funds in driving economic development and the need for robust governance and risk management frameworks to protect pensioners’ interests.