Areas and Places

KZN’s uShaka Mall to go under the hammer

uShaka Mall
KwaZulu Natal's uShaka Mall.

Property investors are gearing up for the sale of one of Kwa-Zulu Natal’s largest retail properties which is set to come under the hammer on 23 August 2017 at 12:00pm. The property, which is being taken to the market due to the seller consolidating their assets, offers investors the opportunity to purchase a well-tenanted mall with leading brands on long-term leases.

Accordingly to Greg Nafte, co-director of Nexus Property Group, the uShaka Mall has developed into a desirable investment among property owners as it’s a secure asset with guaranteed returns due to its strong tenant mix. “The gross annual rental income for this property is over R7.5 million which excludes recoveries for operating expenses”.

“In terms of obtaining finance for a property of this stature, it becomes a lot easier to get funding from banks when you’re able show them that large retail chains are invested in the property too. The mall will also always be a valuable asset as it services the local community’s needs.”

Nafte explains that the mall boasts an erf size of 2, 1128 hectares with a gross lettable area of around 8700 m². The mall is currently 95% occupied and includes a strong mix of stable tenants including CashBuild, Clicks, Telkom, Crazy Store and Cell C as well as anchor tenant, Pick n Pay, who have a lease in place until 2026, after which there be three options to extend for five year periods.”

When discussing how the method of sale was decided upon, Nafte says that an auction was deemed the best method as it brings finality to sale and gives all prospective buyers a fair chance to submit their bids.

All due diligence information is available on request, he adds.