{"id":841398,"date":"2025-10-30T12:30:00","date_gmt":"2025-10-30T10:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=841398"},"modified":"2026-01-26T16:11:47","modified_gmt":"2026-01-26T14:11:47","slug":"two-popular-shopping-malls-in-south-africa-sold-for-r675-million","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/841398\/two-popular-shopping-malls-in-south-africa-sold-for-r675-million\/","title":{"rendered":"Two popular shopping malls in South Africa sold for R675 million"},"content":{"rendered":"\n

Fairvest has acquired Jozini Mall and Tugela Ferry Mall in KwaZulu-Natal for close to R675 million. <\/p>\n\n\n\n

Fairvest concluded a sale of rental enterprises agreement to acquire the rental enterprises known as Jozini Mall and Tugela Ferry Mall. <\/p>\n\n\n\n

The two commuter-centric leasehold retail properties are located across KZN, and are currently managed by Muller Group Invest Proprietary Limited. <\/p>\n\n\n\n

The total purchase consideration reaches R674.0 million at a blended yield of 10.17%. <\/p>\n\n\n\n

Fairvest 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. <\/p>\n\n\n\n

The rights, titles, and interests in Jozini Mall and Tugela Ferry Mall are held by Greater Atlantic Properties Proprietary Limited and Copperzone 163 Proprietary Limited, respectively. <\/p>\n\n\n\n

Miller Group owns a 51.7% beneficial interest in Greater Atlantic Properties and a 41% beneficial interest in Copperzone 163 via private companies related to the Muller Family.<\/p>\n\n\n\n

Fairvest will acquire the rental enterprises conducted by the sellers at their properties, which include tenant lease agreements, property service contracts and employment contracts, as a going concern. <\/p>\n\n\n\n

R399.1 million is being paid for Jozini Mall, which has 19,188 sqm of gross lettable area (GLA). It is anchored by a Shoprite. <\/p>\n\n\n\n

Tugela Ferry Mall is being acquired for R274.9 million, which has 14,853 sqm of GLA and is also anchored by a Shoprite. <\/p>\n\n\n\n

The purchase price will be payable in cash, funded by third-party financing and subject to several conditions. <\/p>\n\n\n\n

The purchase price will escalate at a rate of 0.5% per month, calculated from 1 November 2025 to the Registration Date, which is expected at the end of January 2026.<\/p>\n\n\n\n

Fairvest expects the malls to reach R119 million in revenue for the 12 months ending 30 September 2025, with profit from operations sitting at R73 million.<\/p>\n\n\n\n

When including finance charges, taxation, and straight-line rental accruals, the malls are expected to generate a total distributable income of R11.9 million<\/strong>.<\/p>\n\n\n\n

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Mall Details <\/h2>\n\n\n\n
Property name<\/strong><\/td>Geographical location<\/strong><\/td>GLA (m2)<\/strong><\/td>Weighted average rental per m2 per month (R\/m2)<\/strong><\/td>Purchase price (R)<\/strong><\/td>Anchor tenants<\/strong><\/td><\/tr><\/thead>
Jozini Mall<\/strong><\/td>Jozini, KwaZulu-Natal<\/td>19,188<\/td>R181.29<\/td>R399,104,834<\/td>Shoprite<\/td><\/tr>
Tugela Ferry Mall<\/strong><\/td>Tugela Ferry, KwaZulu-Natal<\/td>14,853<\/td>R165.77<\/td>R274,867,061<\/td>Shoprite<\/td><\/tr>
<\/td><\/td>34,041<\/strong><\/td><\/td>R673,971,895<\/strong><\/td><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
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Financial Expectations <\/h2>\n\n\n\n
Item<\/strong><\/th>Forecast for the 8 months ending 30 September 2026 (R)<\/strong><\/th>Forecast for the 12 months ending 30 September 2027 (R)<\/strong><\/th><\/tr><\/thead>
Revenue<\/td>R75,839,571<\/td>R119,177,404<\/td><\/tr>
Straight-line rental income accrual<\/td>R2,132,281<\/td>R1,367,209<\/td><\/tr>
Property income<\/strong><\/td>R77,971,852<\/strong><\/td>R120,544,613<\/strong><\/td><\/tr>
Operating cost<\/td>(R29,875,051)<\/td>(R47,451,735)<\/td><\/tr>
Profit from operation<\/strong><\/td>R48,096,801<\/strong><\/td>R73,092,878<\/strong><\/td><\/tr>
Finance charges<\/td>(R39,904,753)<\/td>(R59,857,129)<\/td><\/tr>
Profit before taxation<\/strong><\/td>R8,192,048<\/strong><\/td>R13,235,749<\/strong><\/td><\/tr>
Income tax expense<\/td>\u2013<\/td>\u2013<\/td><\/tr>
Total comprehensive income<\/strong><\/td>R8,192,048<\/strong><\/td>R13,235,749<\/strong><\/td><\/tr>
<\/td><\/td><\/td><\/tr>
Adjusted for:<\/strong><\/td><\/td><\/td><\/tr>
Straight-line rental income accrual<\/td>(R2,132,281)<\/td>(R1,367,209)<\/td><\/tr>
Distributable profit<\/strong><\/td>R6,059,767<\/strong><\/td>R11,868,540<\/strong><\/td><\/tr>
<\/td><\/td><\/td><\/tr>
Contracted rental income %<\/td>83.2%<\/td>58.6%<\/td><\/tr>
Near Contracted rental income %<\/td>16.8%<\/td>41.4%<\/td><\/tr>
Uncontracted rental income %<\/td>0%<\/td>0%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
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Jozini Mall Images<\/h2>\n\n\n
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Tugela Ferry Mall Images<\/h2>\n\n\n
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\n","protected":false},"excerpt":{"rendered":"

Fairvest is buying Jozini Mall and Tugela Ferry Mall in a deal just shy of R675 million, with the group targeting retail in previously underrepresented communities. <\/p>\n","protected":false},"author":95,"featured_media":841431,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[23955],"class_list":["post-841398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-fairtree"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/841398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=841398"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/841398\/revisions"}],"predecessor-version":[{"id":848860,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/841398\/revisions\/848860"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/841431"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=841398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=841398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=841398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}