The Vukile Property Fund has acquired the Pan Africa Shopping Centre in Johannesburg, with plans to significantly expand the mall in the coming years.
The 16,000sqm Pan Africa Shopping Centre is located in the heart of Alexandra and opened in 2009 to become South Africa’s first fully-integrated shopping mall and taxi facility.
The mall was refurbished in 2021 and 2022, featuring Pick n Pay’s Boxer brand as an anchor tenant, along with other retailers such as Truworths, Pep, Mr Price, Ackermans, Jet, Clicks, Studio 88 and others.
According to Vukile, the mall’s trading success has been so great that it is now set for a future 9,000 sqm expansion that will take it to over 25,000sqm.
The acquisition agreement is valued at R669 million and splits the transaction into two indivisible parts – the existing shopping centre and its future expansion.
Vukile said it will acquire the shopping centre for R415 million from its sellers, the Pan Africa Development Company – which is held by Atterbury Property, Talis Holdings and Summit Ridge Trading – and will also appoint the sellers to develop the centre’s second phase expansion, which it will acquire for R254 million on opening in April 2024.
Itumeleng Mothibeli, MD SA at Vukile, said: “Pan Africa Shopping Centre is an excellent asset for the Vukile portfolio, which is concentrated in the sweet spot in the SA retail market, with significant exposure to strongly performing township and rural shopping centres.
“As is typical of our assets, it has a high percentage of essential services tenants, which further fortifies the defensiveness of our portfolio.”
Vukile is a specialist retail real estate investment trust with assets of R33 billion in South Africa and Spain through its 89.6% held Madrid-listed subsidiary, Castellana Properties Socimi.