The unlisted Futuregrowth Community Property Fund (Comprop), which invests in rural and township malls, has acquired KG Mall, a convenience shopping centre in Mpumalanga.
Comprop now owns 23 shopping centres with a total gross lettable area (GLA) of more than 392,000m2 and a total value of more than R6.6bn.
“The acquisition of KG Mall fits in with our long-term strategy of acquiring dominant quality shopping centres with strong national tenants that will have strong sustainable income growth in the long-term for our investors,” said Comprop fund manager Smital Rambhai.
Comprop is a flagship fund among Futuregrowth Asset Management’s suite of developmental investments. The fund, established in 1996, has been acquiring and expanding shopping centres catering to the needs of underserviced communities in eight provinces. Its malls include Alexandra Plaza, Diepsloot Mall and Eyethu Orange Farm Mall in Gauteng, Kanyamazane Centre in Mpumalanga, The Crossing (North West), Murchison Mall (KwaZulu-Natal) and Opera Place (Western Cape).
Capital Land Asset Management is responsible for leasing and marketing of the shopping centres as well as assisting with acquisitions, expansions, refurbishments and the disposal of properties.
Rambhai said their shopping centres are in prime locations and provide retail services and products to a primary target market of low- to middle-income groups of about 10-million people. Since inception, the fund has bought, developed or in some cases disposed of 34 shopping centres countrywide.
Centre sizes measure 1,700m2-40,000m2 and are typically tenanted by supermarkets, clothing stores, banks and furniture retailers. Large, listed, national and franchise tenants occupy an average of 86.7% of the space in the centres.
KG Mall is at the entrance to the Kwa-Guqa township in Emalahleni about 95km east of Pretoria in Gauteng. The 21,483m2 shopping centre is anchored by Shoprite, line shops and a Cashbuild that all trade facing a big parking area. Tenants include a KFC and a McDonald’s drive-through.
The mall is easily accessible via Mathews Phosa Street, off the N4 and via the main Kwa-Guqa taxi rank. A pedestrian crossing provides easy access for customers on foot from the taxi rank and the neighbourhood.
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