Two shopping malls in South Africa selling for R674 million
The Competition Commission has greenlit the deal where Fairvest acquire Jozini Mall and Tugela Ferry Mall in KwaZulu-Natal for R674 million.
The commission has recommended that the Competition Tribunal approve the transaction where Fairvest acquires the two malls.
In October, Fairvest said the total purchase consideration reached R674 million, with a blended yield of 10.17%.
The two commuter-centric leasehold retail properties are located across KZN and are managed by Muller Group Invest Proprietary Limited.
Fairvest previously 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 of Jozini Mall and Tugela Ferry Mall are currently 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 through private companies affiliated with the Muller Family.
Just under R400 million is being paid for Jozini Mall. The mall has 19,188 sqm of gross lettable area (GLA) and is anchored by a Shoprite.
Tugela Ferry Mall is being sold for R275 million, which has 14,853 sqm of GLA and is anchored by Shoprite.
The purchase price will be payable in cash, funded by third-party financing, and is subject to several conditions.
Fairvest said that the purchase price will escalate at a rate of 0.5% per month from 1 November 2025 until the Registration date, which was previously expected to be the end of January 2026.
Fairvest said that the malls should reach around R120 million for the 12 months ending 30 September 2025, with profit from operations sitting at R73 million.
Fairvest expects the malls to reach R119 million in revenue for the 12 months ending 30 September 2025, with property from operations sitting at R73 million.
When including finance charges, taxation and straight-line rental accruals, the malls are set to generate a total distributable income of just under R12 million
Mall Details and Financial Expectations
| 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 |
| 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 operations | 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% |
Mall Images
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