Redefine to inject millions of rand into Mall of the South
Relocated taxi rank and an expanded food court form part of the investment
04 July 2024 - 19:04
byNoxolo Majavu
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The Redefine and WeWork offices in Sandton, Johannesburg. Picture: FREDDY MAVUNDA/BUSINESS DAY
Redefine Properties, a prominent landlord listed on the JSE, has announced a strategic investment in its recently acquired retail asset, Mall of the South.
The company said it planned to allocate R45m towards capital expenditure aimed at enhancing and developing the mall.
Mall of the South is in the heart of southern Johannesburg’s affluent Aspen Hills suburb.
The company said the investment was intended to unlock additional value from the property, leveraging its position in Redefine’s diversified property portfolio, which is valued at about R100.4bn.
“Mall of the South, with a varied retail offering of 160 stores as it stands, is a key asset that is situated in a node where it is the dominant retail offering,” said Nashil Chotoki, Redefine’s national asset manager.
Chotoki added that it was an accretive asset for Redefine Properties’ portfolio from an investment return perspective.
About R38m will be used to develop available bulk land for two fast-food drive-throughs, which would supplement the mall’s existing fast-food offering, as well as a tyre fitment centre.
In addition, Redefine has collaborated with taxi associations and relevant local authorities, including the Gauteng transport department and the Johannesburg Roads Agency, to establish a taxi rank on the mall’s premises.
Currently, customers who commute by taxi are dropped off at Swartkoppies Road and must walk to the mall. The new plan involves relocating the taxi rank so customers are dropped off inside the mall’s perimeter. This improvement will enhance accessibility and offer a more convenient option for commuter shoppers.
Chotoki mentioned that the timeline for relocating the taxi rank depended on approval from the provincial transport department.
Redefine took advantage of Game’s departure by welcoming Shoprite, which officially opened in May. This move aligns with its strategic goal of expanding its presence in the rapidly growing essential services sector.
According to Chotoki, this reconfiguration is expected to attract a new customer demographic seeking value and essential offerings, increasing foot traffic in the mall.
“The relocation of the taxi rank plays a pivotal role in enhancing our value proposition,” he added.
Redefine is also collaborating with existing retailer Incredible Connection, a respected brand under Pepkor, to expand its store space and fill the electronics gap left by Game’s departure.
“We are continuously lowering our exposure to and rightsizing underperforming tenants as part of ongoing leasing strategies. We’re also introducing new retailers” to Mall of the South’s tenant mix, he said.
The remaining R7m in capital expenditure will go towards centralising the fast-food offerings into one food court. It will be used to extend the current restaurant area onto a spacious outdoor deck, enhancing the dining experience and overall atmosphere. Currently, food outlets are spread out across the premises.
Redefine is working to switch the entire mall to backup power integrated into the current solar PV plant to lessen reliance on municipal services and guarantee consistent operation of the asset. This integration will lower operating expenses and diesel consumption while also limiting business disruption.
Mall of the South has one of the largest solar PV plants in the Redefine portfolio at 5.2 Megawatt peak, which provides about 25% of annual energy requirements.
The mall “continues to see strong demand and high levels of footfall, which is consistent with the rest of the malls in our retail portfolio. This confirms that SA consumers still value the physical shopping experience,” he said.
About 34% of shoppers belong to the high-income category, resulting in greater average spending per visit. Through strategic adjustments focused on value and the introduction of a value-orientated offering, Redefine aims to broaden the mall’s appeal to include a diverse range of income levels.
It is currently valued at R1.8bn, aligning with its purchase price.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Redefine to inject millions of rand into Mall of the South
Relocated taxi rank and an expanded food court form part of the investment
Redefine Properties, a prominent landlord listed on the JSE, has announced a strategic investment in its recently acquired retail asset, Mall of the South.
The company said it planned to allocate R45m towards capital expenditure aimed at enhancing and developing the mall.
Mall of the South is in the heart of southern Johannesburg’s affluent Aspen Hills suburb.
The company said the investment was intended to unlock additional value from the property, leveraging its position in Redefine’s diversified property portfolio, which is valued at about R100.4bn.
“Mall of the South, with a varied retail offering of 160 stores as it stands, is a key asset that is situated in a node where it is the dominant retail offering,” said Nashil Chotoki, Redefine’s national asset manager.
Chotoki added that it was an accretive asset for Redefine Properties’ portfolio from an investment return perspective.
About R38m will be used to develop available bulk land for two fast-food drive-throughs, which would supplement the mall’s existing fast-food offering, as well as a tyre fitment centre.
In addition, Redefine has collaborated with taxi associations and relevant local authorities, including the Gauteng transport department and the Johannesburg Roads Agency, to establish a taxi rank on the mall’s premises.
Currently, customers who commute by taxi are dropped off at Swartkoppies Road and must walk to the mall. The new plan involves relocating the taxi rank so customers are dropped off inside the mall’s perimeter. This improvement will enhance accessibility and offer a more convenient option for commuter shoppers.
Chotoki mentioned that the timeline for relocating the taxi rank depended on approval from the provincial transport department.
Redefine took advantage of Game’s departure by welcoming Shoprite, which officially opened in May. This move aligns with its strategic goal of expanding its presence in the rapidly growing essential services sector.
According to Chotoki, this reconfiguration is expected to attract a new customer demographic seeking value and essential offerings, increasing foot traffic in the mall.
“The relocation of the taxi rank plays a pivotal role in enhancing our value proposition,” he added.
Redefine is also collaborating with existing retailer Incredible Connection, a respected brand under Pepkor, to expand its store space and fill the electronics gap left by Game’s departure.
“We are continuously lowering our exposure to and rightsizing underperforming tenants as part of ongoing leasing strategies. We’re also introducing new retailers” to Mall of the South’s tenant mix, he said.
The remaining R7m in capital expenditure will go towards centralising the fast-food offerings into one food court. It will be used to extend the current restaurant area onto a spacious outdoor deck, enhancing the dining experience and overall atmosphere. Currently, food outlets are spread out across the premises.
Redefine is working to switch the entire mall to backup power integrated into the current solar PV plant to lessen reliance on municipal services and guarantee consistent operation of the asset. This integration will lower operating expenses and diesel consumption while also limiting business disruption.
Mall of the South has one of the largest solar PV plants in the Redefine portfolio at 5.2 Megawatt peak, which provides about 25% of annual energy requirements.
The mall “continues to see strong demand and high levels of footfall, which is consistent with the rest of the malls in our retail portfolio. This confirms that SA consumers still value the physical shopping experience,” he said.
About 34% of shoppers belong to the high-income category, resulting in greater average spending per visit. Through strategic adjustments focused on value and the introduction of a value-orientated offering, Redefine aims to broaden the mall’s appeal to include a diverse range of income levels.
It is currently valued at R1.8bn, aligning with its purchase price.
majavun@businesslive.co.za
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