Sale of major coastal shopping mall in South Africa gets the green light
Shelly Centre, a popular shopping centre in KwaZulu-Natal, is being sold, with the deal receiving approval from the Competition Commission.
Shelly Centre is a South African shopping centre in Shelly Beach. Its 70 stores serve the broader South Coast community from Hibberdene to Port Edward.
The mall was the first major shopping centre in the area after it opened in 1985, which transformed the sleepy town of Shelly Beach.
In 2015, the mall received a multi-million rand upgrade, modernising its offerings. Although it was well-maintained, it had been 12 years since the previous upgrade.
The mall’s tenants include Woolworths, Pick n Pay, Mr Price, Clicks, Markham, Telkom, MTN, Foschini, Earthchild, Edgars, Cape Union Mart and several bank branches.
Regarding food offerings, the mall has a Spur, Panarottis, Vida, Wimpy, Steers, Debonairs, Roco Mamas and a Mugg & Bean.
Although the mall is also home to cinema chain Ster Kinekor, the brand is set to exit the mall as per of a nationwide restructuring.
The mall is set to be under new ownership after the Competition Commission approved the transaction whereby Trident intends to acquire the property.
Trident is a property investment holding company that owns commercial properties in South Africa, Australia and the United Kingdom.
The group in South Africa owns roughly 28 properties in KZN, Western Cape, Gauteng, and the Eastern Cape provinces.
The group is set to acquire the Shelly Centre from its owner, JSE-listed Sanlam. Sanlam is South Africa’s largest insurer and has a market cap of roughly R200 billion.
The Competition Commission believes that the proposed transaction is unlikely to prevent or lessen competition in any market substantially.
To address public interest concerns, the acquiring firm is undertaking to procure management services from historically disadvantaged persons for the centre.
In addition, the Competition Commission noted that Trident has also tendered employment commitments.
Images of Shelly Centre
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