Big change for R640 million shopping mall in South Africa’s richest area
Flanagan & Gerard Property Group has taken full ownership of the Morningside Shopping Centre, which caters to an upmarket part of Sandton.
Flanagan & Gerard have a strong relationship with the centre, with their offices located within it. The centre caters to an affluent consumer space, given its location in Africa’s richest square mile.
The property group has now taken full ownership of the Morningside Shopping Centre in Sandton, having initially acquired the property alongside Grapnel Property Group.
The centre was then redeveloped, with a new and improved site officially opened in June 2009.
Having now acquired the full property, Morningside Shopping Centre, Flanagan & Gerard’s first wholly owned property.
The R640 million centre offers a bespoke retail destination that serves higher-income residents across Morningside and the greater Sandton node, which includes Bryansaton and surrounding suburbs.
The centre has stable footfall and resilient consumer spending patterns, which support consistent rental income.
The fully let 11,600 sqm store shopping centre houses 64 stores. It also has a curated tenant mix that combines convenience retail with bespoke fashion, which supports resilient income streams and lower vacancy risk.
The centre is anchored by Woolworths Food, Pick n Pay, and Clicks, and enjoys strong tenant retention, underpinned by its prime location, visibility and quality.
The company first recognised the asset’s potential in 2008, with its offices at the centre for the past 16 years, and has maintained a close, hands-on relationship with the property.
The centre was then smaller and outdated, with the 2009 reopening featuring a contemporary design and a carefully curated mix of retail and dining offerings.
Managing director Paul Gerard said that the mall is “a prime asset in an excellent catchment area with great access and visibility”.
Gerard noted that increased residential densification in the area is expanding the centre’s high-end shopper base.
More on the cards
The property also offers further value-added potential, with Flanagan & Gerard in the process of optimising the centre’s zoning in line with updated town planning conditions.
This marks the first step in the larger project to enhance the tenant mix, expand the footprints of key tenants and improve operational elements such as delivery access.
Although Flanagan & Gerard remains committed to its preferred co-ownership investment mode, the Morningside centre presented a unique opportunity to exercise its rights when Grapnel decided to sell.
“Sole ownership brings the benefit of swifter, more focused decision-making, while partnerships offer the synergies of complementary skills and resources,” said Gerard.
“Acquiring Grapnel’s stake in Morningside Shopping Centre builds on our track record as strong, flexible partners who can adapt and innovate in line with the needs of our partners, retailers and consumers, as well as the rapid evolution of trends and technology in the property and retail sectors.”
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