Two popular shopping malls in South Africa sold for R675 million
Fairvest has acquired Jozini Mall and Tugela Ferry Mall in KwaZulu-Natal for close to R675 million.
Fairvest concluded a sale of rental enterprises agreement to acquire the rental enterprises known as Jozini Mall and Tugela Ferry Mall.
The two commuter-centric leasehold retail properties are located across KZN, and are currently managed by Muller Group Invest Proprietary Limited.
The total purchase consideration reaches R674.0 million at a blended yield of 10.17%.
Fairvest said that the transaction aligns with its strategy of investing in retail assets that service previously underserved communities and near community centres and transportation services.
The rights, titles, and interests in Jozini Mall and Tugela Ferry Mall are held by Greater Atlantic Properties Proprietary Limited and Copperzone 163 Proprietary Limited, respectively.
Miller Group owns a 51.7% beneficial interest in Greater Atlantic Properties and a 41% beneficial interest in Copperzone 163 via private companies related to the Muller Family.
Fairvest will acquire the rental enterprises conducted by the sellers at their properties, which include tenant lease agreements, property service contracts and employment contracts, as a going concern.
R399.1 million is being paid for Jozini Mall, which has 19,188 sqm of gross lettable area (GLA). It is anchored by a Shoprite.
Tugela Ferry Mall is being acquired for R274.9 million, which has 14,853 sqm of GLA and is also anchored by a Shoprite.
The purchase price will be payable in cash, funded by third-party financing and subject to several conditions.
The purchase price will escalate at a rate of 0.5% per month, calculated from 1 November 2025 to the Registration Date, which is expected at the end of January 2026.
Fairvest expects the malls to reach R119 million in revenue for the 12 months ending 30 September 2025, with profit from operations sitting at R73 million.
When including finance charges, taxation, and straight-line rental accruals, the malls are expected to generate a total distributable income of R11.9 million.
Mall Details
| Property name | Geographical location | GLA (m2) | Weighted average rental per m2 per month (R/m2) | Purchase price (R) | Anchor tenants |
| Jozini Mall | Jozini, KwaZulu-Natal | 19,188 | R181.29 | R399,104,834 | Shoprite |
| Tugela Ferry Mall | Tugela Ferry, KwaZulu-Natal | 14,853 | R165.77 | R274,867,061 | Shoprite |
| 34,041 | R673,971,895 |
Financial Expectations
| Item | Forecast for the 8 months ending 30 September 2026 (R) | Forecast for the 12 months ending 30 September 2027 (R) |
|---|---|---|
| Revenue | R75,839,571 | R119,177,404 |
| Straight-line rental income accrual | R2,132,281 | R1,367,209 |
| Property income | R77,971,852 | R120,544,613 |
| Operating cost | (R29,875,051) | (R47,451,735) |
| Profit from operation | R48,096,801 | R73,092,878 |
| Finance charges | (R39,904,753) | (R59,857,129) |
| Profit before taxation | R8,192,048 | R13,235,749 |
| Income tax expense | – | – |
| Total comprehensive income | R8,192,048 | R13,235,749 |
| Adjusted for: | ||
| Straight-line rental income accrual | (R2,132,281) | (R1,367,209) |
| Distributable profit | R6,059,767 | R11,868,540 |
| Contracted rental income % | 83.2% | 58.6% |
| Near Contracted rental income % | 16.8% | 41.4% |
| Uncontracted rental income % | 0% | 0% |
Jozini Mall Images
Tugela Ferry Mall Images
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