Redefine gets nod for Mall of the South deal

Redefine Properties, a landlord listed on the Johannesburg Stock Exchange (JSE) with a property portfolio valued at about R97-billion, is close to acquiring the Mall of the South, located in the southern region of Gauteng.

This comes after the Competition Commission suggested the deal be approved unconditionally. The commission described the Mall of the South as a super-regional retail centre located in Gauteng at the intersection of Swartkoppies Road and Kliprivier Drive.

According to the commission, there is little chance that the planned acquisition will significantly reduce or eliminate competition in any market. Furthermore, there are no issues about the public interest raised by the proposed transaction.

Redefine is one of the biggest real estate companies in  the country with a market value of slightly less than R30-billion on the JSE. Its already impressive portfolio of retail real estate will be expanded with the acquisition of Mall of the South.

The group owns the following malls: Kenilworth Centre in Cape Town; Golden Walk in Germiston; Matlosana Mall in North-West;  and Centurion Mall in Pretoria.

In addition, it owns a number of industrial and commercial buildings in Sandton, the wealthiest square mile in Africa, including Rivonia Office Park, 16 Fredman and 155 West Street.

Gauteng continues to lead South Africa’s commercial real estate market. “A lot of office buildings in popular Gauteng locations that weren’t fully leased before the epidemic are now either totally leased or have very few vacancies and are gradually increasing in rental value.

“Tenants are looking for high-end buildings in prime locations with easy and convenient access to services and facilities. “This is contributing to a high volume of deals, though smaller in nature, in key nodes, such as Bryanston, Sandton, Rosebank, Midrand, Greenstone and Struben’s Valley, where vacancies in the Redefine portfolio are currently lower than at pre-Covid levels,” said Scott Thorburn, Redefine national asset manager.

“With increasing demand, it is logical to infer that Gauteng is back to normal in terms of property fundamentals.”

The biggest owner of commercial real estate in South Africa and competitor of Redefine, Growthpoint, has shifted its emphasis  to industrial real estate, especially in KwaZulu-Natal.

With a market value of over R100-billion, Growthpoint possesses an extensive property portfolio that includes 155 office complexes, 168 industrial properties and 39 retail properties.

It mostly owns properties in Gauteng, KZN and Western Cape.

The famous headquarters of Discovery in Sandton serves as its main office building.

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