Major 36-year-old regional shopping mall in South Africa sold
The Competition Commission has approved the sale of two shopping centres in South Africa: the 10,000 square metre E’Mhluzi Mall in Mpumalanga, and the 42,000 square metre Chatsworth Centre in KwaZulu-Natal.
The commission recommended that the Competition Tribunal approve both sales without conditions.
In both cases, the proposed transactions are unlikely to substantially lessen or prevent competition in any market, nor do they raise any significant public interest concerns, the commission said.
The larger of the two malls, the Chatsworth Centre, is one of the biggest shopping centres in the province, having opened in 1989.
The mall is currently owned by Sanlam Life, controlled by Sanlam Limited. The group has pumped millions of rands into the mall over the years, including a R140 million facelift and refurbishment between 2016 and 2018.
These enhancements—including entrance upgrades, paving, parkades, and storefronts—kept the centre up to date with modern sensibilities and cemented it as a key destination for consumers in the region.
The mall houses approximately 150 stores and is part of the Chatsworth CBD, is 15km from the Durban CBD, and reports over 1.1 million visitors a month.
The mall is being sold to the Vukile Property Fund, a retail property-focused real estate investment trust (REIT) which owns a portfolio of properties in South Africa, Spain and Portugal.
Vukile is also involved in property asset management and owns a combination of retail and office properties as well as vacant land.
Vukile owns several prominent retail centres across South Africa, including East Rand Mall, Randburg Square, and Mall of Mthatha.
Chatsworth Mall Pictures
Mhluzi Mall
The second mall approved for sale is the E’Mhluzi Mall in Mhluzi (Middelburg), Mpumalanga. The retail centre is much smaller, at 10,000 square metres, but serves in a high-demand area.
The mall is being sold to Bright Edge, which is ultimately controlled by family trusts.
According to the commission, Bright Edge is engaged in the acquisition and disposal of properties and holds various retail properties in South Africa.
Of relevance to the sale, the group owns retail properties in Mpumalanga.
The mall is currently is controlled by E’Mhluzi Proprietary Limited, and is classified as a “neighbourhood centre” located at Ikageng Street, Mhluzi, Mpumalanga.
The mall was developed by Fontis Developments, which focuses on the development of retail shopping malls in rural areas. It opened in 2013.
Mhluzi, which the mall services, was established in 1864 and became an important commercial, communications, and industrial centre for the region, and a key stopping point between Joburg and the ports of Durban.
Pictures of E’Mhluzi Mall
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