Free State shopping centre set for R338m redevelopment
JSE-listed real estate investment trust (Reit) Vukile Property Fund will invest R338-million in expansion and redevelopment of the Maluti Crescent shopping centre, in Phuthaditjhaba, Free State.
The project will add 12 357 m2 to the centre, taking it to a total 34 360 m2.
Simultaneously, the development will transform Maluti Crescent from a strip mall to a modern, enclosed shopping centre. The project will also add a new undercover taxi rank of 100 bays and more parking.
Vukile acquired Maluti Crescent in its acquisition of the retail portfolio of the former Synergy Income Fund, two years ago and identified the opportunity to unlock greater performance from this asset.
Vukile has appointed shopping centre developers and leasing specialists Flanagan & Gerard Property Development and Investment as the development managers for the project.
Construction on the project broke ground this month and is scheduled for completion in October 2018.
“This major investment in Maluti Crescent is backed by Vukile’s data-driven asset management. The strategic project will ensure the shopping centre is dominant in its market and is enhanced with strategic improvements that support its trading.
“For Vukile, this redevelopment has a projected net yield of 8.5% for its first year after completion. Vukile’s investment will also extend the lifecycle of this shopping centre asset and position it to better meet the modern retail needs of the 80 000-plus households of Phuthaditjhaba, as well as its surrounds,” commented Vukile executive asset manager Itumeleng Mothibeli.