Redefine Properties, South Africa’s leading real-estate investment trust (REIT), has concluded its acquisition of a holding in Pan Africa Shopping Centre in Alexandra.
Andrew König, Chief executive officer at Redefine, says the addition of the centre to the company’s portfolio demonstrates confidence in South Africa’s retail property sector. “As Pan Africa and other recent acquisitions demonstrate, Redefine views its retail portfolio as a key driver for sustained long term growth, both in terms of the company and national socioeconomic development,” he adds.
Located on the corner of 3rd Street and Watt Street in Alexandra, Gauteng, Pan Africa Shopping Centre boasts a current GLA size of 15 775sqm and serves as a cornerstone of the community of Alexandra and surrounding areas. The easy-to-navigate, double-level centre is home to a wide range of national and independent retailers, as well as fast food outlets. Notably, the centre was a first of its kind in South Africa as it was built with fully integrated public transport, which included a taxi facility.
Currently, Pan Africa Shopping Centre is undergoing a multi-phase upgrade and expansion process that will see the centre’s lettable area increase to over 25 000sqm, featuring bigger spaces for existing retailers such as Truworths and Mr Price Group, as well as new additions such as W Edit, Pick n Pay Clothing and Sportscene. The expansion is scheduled to be completed in October this year.
ESG credentials of the centre will be enhanced through the inclusion of solar, propel air toilets and energy efficient lighting. The centre will also have full back up power and water to ensure retailer’s trade will not be affected by disruptions.
“Pan Africa represents a step forward in expanding our local portfolio and is an example of our commitment to facilitating a quality communal shopping experience for all South Africans. Going to your local centre, should be an exercise in comfort, safety and convenience, the defining attributes of any mass retail space,” König explains.
Redefine’s purchase of Pan Africa Shopping Centre comes on the heels of the company’s full acquisition of the Mall of the South – one of South Africa’s largest retail properties located in Johannesburg South – from previous co-owner RMB Investment and Advisory (RMBIA).
“Retail accounts for more than 40% of Redefine’s asset platform in South Africa. In alignment with our retail strategy and capital allocation plan, these acquisitions show we are looking to the future, to develop and manage properties that speak to a corporate vision and identity characterised by excellence, diversity, and versatility,” König concludes.
According to Redefine’s results for the interim period ended 29 February 2024, the company’s local portfolio has largely stabilised, with signs of improvement across most operating metrics. In that period, Redefine completed 379 147sqm of leases, with new deals accounting for 42% and renewals making up the balance. In addition, renewal reversion rates improved from -6.7% at August 2023 to -6.0% at February 2024, demonstrating the quality of Redefine property assets.
