Vukile Property Fund is in the process of acquiring the landmark Pan Africa Shopping Centre in Alexandra Township in Johannesburg, as well as the asset’s second phase extension due for completion in 2024.
Following the fulfilment of conditions precedent, the R669 million acquisition will be funded out of proceeds from sales and existing resources which won’t affect the REIT’s current Loan to Value ratio of 43%.
“Vukile has been focused on recommencing growth in our core markets from a strong operational and financial position. In early 2022, we successfully restarted our growth in Spain, and now we are particularly pleased to resume the growth of our South African portfolio with this major investment in Pan Africa Shopping Centre. By acquiring this asset and its future extension, we are deepening our core investment strategy in South Africa and adding value for our stakeholders”, says Vukile CEO, Laurence Rapp.
The 16 000m2 Pan Africa Shopping Centre, located in the heart of Alexandra’s iconic transport and retail hub, made history when it opened in 2009 to become South Africa’s first fully integrated shopping mall and taxi facility. Refurbished in 2021/20222, the centre is now well established and well supported by its consumer market.
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 000m2 expansion, which has received overwhelming support, that will take it to over 25 000m2.
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.
