New R1 billion shopping mall experience in South Africa

·10 Mar 2025

The Mall of Mthatha, formerly BT Ngebs City, has undergone a significant facelift to reinforce its position as one of the biggest retail destinations in the Eastern Cape.

The 60,000 square metre mall was initially built for R1.4 billion but was acquired by property and management group Flanagan & Gerard and retail REIT Vukile Property Fund for R800 million in 2024.

However, the group has since pumped a further R210 million into the mall through a massive redevelopment strategy to improve flow, design and the mall’s tenant mix, bringing it back to the R1 billion experience.

The group noted that one of the key aspects of the investment was to expand and diversify the retail mix.

Under the new ownership, the mall’s vacancy rate has decreased dramatically from 18% to just 1.85%, reflecting the strong demand for quality retail space in the region.

Notable new tenants include Dis-Chem (opening March 2025), Spur and News Café (both opening June 2025), and Shoprite and Shoprite Liquor (scheduled to open in August 2025).

Recently opened retail entrants include fast food outlet Burger King, clothing retailers Pick n Pay Clothing, Queenspark, Sergeant Pepper Clothing Company and JAM Clothing, along with Homechoice, Pep Home, Mr Price Cellular and Van Schaik Bookstore.

Additionally, Studio 88, Sidestep and Skipper Bar have all be expanded.

“These strategically selected Mall of Mthatha tenants further enhance the shopping experience for the community and bolster the mall’s status as Mthatha’s premier shopping and fashion hub,” the group said.

F&G noted that the mall’s trading performance has improved significantly since the facelift and restructuring, recording a 9.7% turnover increase from January to December 2024 compared to the previous year.

Foot traffic has also shown double-digit growth in recent months, it said.

The group said that investment has extended beyond the tenant mix, to overall design and finishes.

Refurbishments and upgrades are still underway, it said, with a focus on the shopping environment.

The addition of a new mezzanine level and lobby are set for completion by the end of May 2025. New escalator installations will be completed outside Woolworths in March 2025 and outside Checkers by the end of May 2025.

The mall has completed significant upgrades to the existing bathroom facilities, as well as adding new bathrooms to the restaurant block.

“Shoppers will have access to the modern mezzanine bathrooms from 1 April, with the newly refurbished bathrooms near Checkers, offering an elevated experience from 1 May,” F&G said.

Infrastructure investments as part of the project are ongoing, with enhancements in lighting, CCTV, HVAC systems, access control, and Occupational Health and Safety compliance.

Additionally, a new 1.8MW solar installation is being implemented to support sustainability initiatives.

Mall of Mthatha is the latest in a long list of mall partnerships between Flanagan & Gerard and Vukile Property Fund. The groups are co-owners of Thavhani Mall in Limpopo and Springs Mall in Gauteng.

Flanagan & Gerard are also involved in the R400 million upgrade of Fourways Mall.

Mall of Mthatha’s upgrade project is set to be complete by September 2025.

However, the group said that they will continue to invest in and build on the developments going forward.