Popular shopping mall sitting between two major townships in South Africa sold
The Competition Commission has recommended that the sale of Umphakathi Mall in Randfontein be approved, without conditions.
The mall is being acquired by Community Property Company (CPC) from Ragnarak Trading.
CPC is a property holding and investment company which specialises in the acquisition of new and existing shopping centres that cater to the needs of underserved communities throughout South Africa.
The group invests in retail properties in both township and rural locations throughout the country.
It is the corporate entity and holding structure behind the Futuregrowth Community Property Fund, which focuses on developmental investments and manages R9.3 billion in properties.
The group currently owns 25 properties in eight provinces, with the shopping centres in its portfolio located in prime locations across townships and rural areas nationwide.
Umphakathi Mall is a 14,000 square metre community shopping centre situated off Main Reef Road (R28), between Mohlakeng and Toekomsrus, Rand West City, Gauteng.
The mall opened in April 2021, after a three-year development launched by the Ancora Group in 2018.
The development was challenging, disrupted by the COVID-19 pandemic, but it eventually launched at full tenant capacity.
The mall was built and opened during a significant shift in South Africa’s retail landscape, where consumers gravitated towards smaller community centres over massive regional malls.
The rural retail segment has seen a huge boom since the pandemic, with REITs and other investors piling into the market.
Umphakathi Mall serves a local community of around 129,000 people and 38,000 households, largely from the adjacent townships of Mohlakeng and Toekomsrus.
The commission said it is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market.
The proposed transaction does not raise significant public interest concerns, it added.
Pictures of Umphakathi Mall
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