New R1 billion regional shopping mall launches in South Africa
The Mall of Mthatha has officially opened its doors following an extensive upgrade under the ownership of Vukile Property Fund and Flanagan & Gerard Property Group.
The mall was acquired for R800 million in May 2024, and it has undergone a R225 million redevelopment.
It looks to solidify its position as the dominant retail and lifestyle destination in Mthatha, a regional economic anchor for the Eastern Cape city.
The mall, which was previously known as BT Ngebs City, is a regional shopping centre in the city’s central business district.
The mall was a struggling asset a year and a half ago, but has quickly become a thriving regional hub through redesign, re-tenanting, and new investment.
“We’ve focused on refining every detail, from the back-of-house systems to the front-of-house feel,” said Paul Gerard, Managing Director of Flanagan & Gerard Property Group.
“This investment is not only about what shoppers can enjoy today, but what they can expect from their mall in the future. Mall of Mthatha is here to stay, and to grow with Mthatha.”
Mall of Mthatha now offers a shopping experience and retail mix that was previously unavailable anywhere else in the region.
Since its acquisition last year, Mall of Mthatha has welcomed Pick n Pay Clothing, Dis-Chem, Burger King, Queenspark, Newscafé, Volpes and Home Choice.
Contemporary high shopfronts and the latest retail have helped create a fresh, lighter, brighter atmosphere in the mall.
New restaurants and entertainment concepts have re-energised the mall, and include fun family entertainment at Mthatha’s only Hardhats.
The mall also saw enhanced vertical circulation, with two new escalators linking the parking areas directly to the doors of Woolworths, Checkers and Shoprite.
The mall has also seen the addition of a new mezzanine level with service-based tenants, as well as modern, welcoming ablution facilities.
The new mezzanine level added approximately 700 sqm to the mall’s gross lettable area, bringing the total to 60,762 sqm.
The Mall of Mthatha now also links more naturally with the adjacent hotel and casino, features local art installations, and boasts a new 2.3MW rooftop solar installation.
Vacancies drop
Since the change in ownership, the mall has seen its vacancies drop massively from 20% to just 1.72%. Monthly foot traffic has grown 5% to over 6 million annual visitors.
Retail performance has also surged in step, with annual turnover between September 2024 and August 2025 increasing 25% year-on-year, with August 2025 alone up 32.4%.
Among the mall’s best-performing retail categories over the past year were homeware and interiors (+66%), restaurants (+40%), fast food (+36%), pharmacy and self-care (+12%) and men’s wear (+12%).
The new owners thank the city for their support in building the mall, with the local government planning a key role since the planning phase.
“By collaborating with the private sector, we’re driving economic growth, creating jobs and improving the quality of life for our communities,” said G.N. Nelani, Executive Mayor of King Sabata Dalindyebo Municipality.
“Mall of Mthatha not only provides a hub for retail and entertainment but also serves as a catalyst for further development in our area.”
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