The Neighbourhood Square convenience shopping centre in Linksfield, Johannesburg, officially belongs to new owners, Flanagan & Gerard and Burstone Group, who each hold a 50% stake in the retail asset.
The process for the R380 million acquisition began when Burstone exercised its first right of offer over the property then owned by Investec following the management internalisation process that saw the transition of Investec Property Fund into Burnstone Group in 2023.
The deal marks the second transaction between the two companies. In 2020, Flanagan & Gerard acquired a 50% stake in Musina Mall in Limpopo from the then-Investec Property Fund, together with Moolman Group which increased their share to 50%.
Flanagan & Gerard will take on a strategic asset management role for The Neighbourhood Square.
“The Neighbourhood Square is a strategically important asset, and the acquisition reflects our priorities of focusing on property fundamentals and collaborating with best-in-class partners, such as Flanagan & Gerard. The deal is a great example of our strategy to deliver income and capital growth over the long-term,” says Graham Hutchinson, MD of Burstone Group South Africa.
“We are delighted that the transfer of The Neighbourhood Square is now concluded and to be co-owners of this asset with respected real estate investor, Burstone Group. The extremely popular centre has quickly established an enviable trading track-record and has a waiting list of new tenants. It is a great match for our portfolio, with the opportunity to unlock value over time,” comments Paul Gerard, MD of Flanagan & Gerard Property Group.
The Neighbourhood Square is a newly developed, open-air convenience retail centre, which is dominant in its node. In a very short time, it has established excellent operating fundamentals and trading metrics, including zero vacancies. It has 86% national retail tenants and the strength of dual anchor tenants, Checkers and Woolworths.
