Major 44,200 square metre shopping mall in South Africa selling for R630 million
The Competition Commission has approved the proposed sale of Cedar Square in Fourways to property group Aristonas.
Cedar Square is a significant retail centre in Fourways, with approximately 44,249 square metres of gross lettable space.
It includes both retail and office space components.
Accelerate Property Fund announced the sale in September, noting that it was disposing of the mall as a going concern for an aggregate purchase consideration of R630 million.
Accelerate said that the disposal forms part of its ongoing strategic repositioning and restructuring programme.
The group intends to apply the proceeds of the disposal to reducing debt.
Aristonas is active in the holding and letting of retail, commercial, and residential property in Gauteng, KwaZulu-Natal, and the Western Cape.
Relevant to the Competition Commission’s assessment of the transaction, it flagged the group’s retail properties in Gauteng.
These include six neighbourhood centres and two community centres located in Johannesburg and Pretoria.
The Competition Commission said that the proposed transaction is unlikely to substantially lessen or prevent competition in any market.
The proposed transaction also does not raise significant public interest concerns, it said.
While the path is now clearer for Aristonas to acquire Cedar Square and its related income stream and available bulk, it will not acquire the right to develop the bulk.
The right to develop the available bulk of 40,447 square metres will be retained by Accelerate by means of a Notarial Deed of Servitude registered in favour of the group, it said.
Should Aristonas wish to develop the bulk, it will be entitled to purchase the Development Rights by giving written notice to Accelerate.
The valuation of the bulk is R169 million, the group noted.
Following the disposal, Fourways Mall will remain the last major retail centre in Accelerate’s portfolio.
Images of Cedar Square
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