Growthpoint upgrades Paarl Mall as retail strategy shifts to core assets

Growthpoint Properties has begun a R270m redevelopment of Paarl Mall in the Western Cape, doubling down on a strategy of selectively reinvesting in high-performing retail assets as it sharpens its South African portfolio.

The upgrade will expand the mall, add a new main entrance and improve the way shoppers move through the centre, with completion expected in November, before the peak holiday trading period, Growthpoint said in a statement.

“We’re concentrating capital and management focus on centres that lead in their catchment areas and offer sustainable rental growth. Paarl Mall fits this profile extremely well,” said Growthpoint head of retail asset management Gavin Jones.

The redevelopment comes as Growthpoint accelerates a broader portfolio reshaping. In its latest trading update, the group said its South African disposal programme is likely to exceed its R3.5bn target as it exits underperforming CBD nodes and redirects capital into higher-growth regions such as the Western Cape — particularly logistics and retail assets, will remain a primary beneficiary of this capital reallocation in the financial year ending June 30.

Paarl Mall ranks among Growthpoint’s strongest-performing retail assets, with vacancies consistently below 1%. It is positioned alongside the N1. According to Growthpoint, the centre serves a catchment area experiencing rapid residential expansion, with more than 4,300 new housing units planned or under construction, cementing its long-term growth prospects.

“Our focus is to create retail environments where customers stay longer and retailers trade better. Paarl Mall demonstrates how selective reinvestment in a strong asset adds value for all stakeholders,” Jones said.

Construction on the redevelopment began in mid-January and is scheduled for completion in November. The mall will remain open throughout the redevelopment phase, with measures in place to limit disruptions and maintain shopper access.