Pan Africa Shopping Centre, in Alexandra, Gauteng
Photo by: Franz Rab
JSE-listed Vukile Property Fund has expanded its significant investment in South African township, rural and commuter shopping centres with its agreement to acquire the landmark Pan Africa Shopping Centre, in Alexandra, Gauteng, which is due for a second phase extension.
This R669-million Pan Africa shopping centre acquisition complements Vukile's high-quality, low-risk retail property portfolio, the company says.
Following the fulfilment of conditions precedent, the strategically aligned acquisition will be funded out of proceeds from sales and existing resources and will not affect Vukile’s current loan-to-value of 43%.
The 16 000 m2 centre, located in the heart of Alexandra’s transport and retail hub, made history when it opened in 2009 to become South Africa’s first fully-integrated shopping mall and taxi facility, Vukile outlines.
Refurbished in 2021/22, the centre is now well established and very well supported by its consumer market, Vukile states.
It is anchored by Boxer, with a high national retailer tenant component including Truworths, Pep, Mr Price, Ackermans, Jet, Clicks, Studio 88 and others.
Based on its trading success, Pan Africa is set for a future 9 000 m2 expansion, that will take it to over 25 000 m2.
The acquisition agreement splits the transaction into two indivisible parts – the existing shopping centre and its future expansion.
Vukile will acquire the shopping centre for R414.6-million from its sellers, the Pan Africa Development Company, which is held by Atterbury Property (50.887%), Talis Holdings (47.337%) and Summit Ridge Trading 5 (1.776%).
Vukile will also appoint the sellers to develop the centre’s second phase expansion, which it will acquire for R254.3-million on opening in April 2024.