Nick Wilson

Property Correspondent

EMPOWERMENT group Igwa Investments has bought a 20% interest in the R410m Vaal Mall in Vanderbijlpark in an R85m deal.

The developer, Vaal Mall Developments, said that Igwa’s interest, together with Kagiso Property Group’s 14,5% stake in the mall, pushed the black economic empowerment ownership component up to 34,5%, making it one of the most empowered shopping centres in SA.

Igwa is using bank debt to buy its interest in the mall, which opens in April next year.

Vaal Mall Developments’ owners include developers Flanagan & Gerard and Kagiso Property Group.

The owners of the mall are listed property unit trust Sycom Property Fund, which owns 51%, Flanagan & Gerard, which has 14,5%, Kagiso, with a 14,5% stake, and Igwa Investments with 20%.

"It is probably the shopping centre with one of the highest percentages of direct ownership by empowerment investors.

"The aggregate of empowerment investments is 20% plus the 14,5% by Kagiso, bringing the empowerment ownership component to 34,5%," said Patrick Flanagan of Flanagan & Gerard.

Flanagan said their empowerment efforts also included involving local entrepreneurs, suppliers and labourers in the construction of the mall. Empowerment facilitators Sisiziwe Projects provided a comprehensive database of suitable entities.

All selective tenders were put out to the Vaal community, creating opportunities for local companies to bid for potential jobs.

"Of the order of 400-500 skilled, semiskilled and unskilled people from the local Vaal community are on site at virtually any one time," said Flanagan.

He said the 50000m² mall consisted of 160 shops and was already 99,9% let.

Flanagan said when the tender submission to the Emfuleni Council was made, it included an undertaking to make available not less than 15% for a local empowerment company in the mall.