{"id":783837,"date":"2024-07-23T11:33:03","date_gmt":"2024-07-23T09:33:03","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=783837"},"modified":"2024-07-23T11:33:10","modified_gmt":"2024-07-23T09:33:10","slug":"r380-million-shopping-mall-deal-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/783837\/r380-million-shopping-mall-deal-in-south-africa\/","title":{"rendered":"R380 million shopping mall deal in South Africa"},"content":{"rendered":"\n

JSE-listed property group Burstone has concluded a R380 million transfer deal for The Neighbourhood Square shopping centre in Linksfield. Along with co-owners Flanagan & Gerard, Burstone will take over 50% ownership of the centre.<\/p>\n\n\n\n

Burstone Group partnered with retail real estate specialist Flanagan & Gerard to acquire the strategic retail asset, with each owner holding a 50% stake in the 10,000 square metre centre.<\/p>\n\n\n\n

The R380 million acquisition process began when Burstone Group exercised its first right of offer over Investec’s property. This followed the management internalisation process that saw the transition of Investec Property Fund into the Burstone Group in 2023.<\/p>\n\n\n\n

The deal marks the second transaction between the two property players in recent years. <\/p>\n\n\n\n

In 2020, Flanagan & Gerard acquired a 50% stake in Musina Mall, Limpopo, from the then-Investec Property Fund, together with Moolman Group, which increased their share to 50%.<\/p>\n\n\n\n

Flanagan & Gerard is known for its distinctive hands-on approach to retail property and will take on a strategic asset management role for The Neighbourhood Square.<\/p>\n\n\n\n

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Graham Hutchinson, Managing Director of Burstone Group South Africa said The Neighbourhood Square is a strategically important asset and will see the group up to boost income and see capital growth over the long-term.<\/p>\n\n\n\n

Paul Gerard, MD of Flanagan & Gerard Property Group, said the centre is extremely popular and has a “waiting list of new tenants”. <\/p>\n\n\n\n

The Neighbourhood Square is a newly developed open-air convenience retail centre. According to the group, it currently has “excellent operating fundamentals and exceptional trading metrics”, including zero
vacancies. <\/p>\n\n\n\n

“It has 86% national retail tenants and the formidable strength of dual anchor tenants, Checkers and Woolworths,” it said.<\/p>\n\n\n\n

The group said there are plans to build on the centre’s success with general improvements and retail mix refinements, making the customer experience at The Neighbourhood Square even better. <\/p>\n\n\n\n

New retailers recently added to the centre\u2019s appealing line-up include Thule, JJ Cale, and Wellness Warehouse.<\/p>\n\n\n\n

The group is also boosting the energy procurement for the centre, committing to renewable energy. They plan to add additional rooftop solar panels to the development.<\/p>\n\n\n\n

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Making waves<\/strong><\/p>\n\n\n\n

Flanagan & Gerard, along with the Moolman group, are prominent players in the premium retail space.<\/p>\n\n\n\n

The company has developed many shopping centres, including Vaal Mall, Highveld Mall, Heidelberg Mall, Eyethu Orange Farm Mall, and Nicolway.<\/p>\n\n\n\n

It was also behind the award-winning Morningside Shopping Centre, Middelburg Mall, and Mall of the North in Polokwane.<\/p>\n\n\n\n

The groups recently partnered in the process of revitalising and handling the management of South Africa’s biggest mall, Fourways Mall, in a bid to turn its operations around.<\/p>\n\n\n\n

The mall has been struggling with low rentals and a poor financial performance, which continued in the latest financial year, adding to a staggering R625 million loss for the mall’s 50% owner, the Accelerate Property Fund.<\/p>\n\n\n\n

The fund recently appointed Flanagan & Gerard and the Moolman Group to execute a six-month strategy to turn this around, with R400 million expected to be spent on the project.<\/p>\n\n\n\n

The targeted strategy is to reestablish it as a top-tier shopping destination.<\/p>\n\n\n\n

The strategy will offer a mix of retail options within a convenient, safe, and engaging environment. It includes:<\/p>\n\n\n\n