The acquisition of the R270m stake in the 40000m² Highveld Mall, to be built on a 19ha site adjacent to The Ridge Casino, comes amid expectations that strong retail spending will continue.
The new mall will have a strong empowerment component, with empowerment groups owning 22,5% of it, worth R100m
Earthworks on the site have already begun, while construction of the mall will get under way next month, with a completion date set for April next year.
Resilient Income Fund MD Des de Beer said the Highveld Mall acquisition was in line with the firm’s strategy of investing in dominant retail property in outlying areas.
The Highveld Mall is being developed by a consortium of Flanagan & Gerard Property Development and Investment and its 50% empowerment partner, Falcon Forest Trading.
Apart from Resilient with its 60% interest in the mall, other shareholders include Flanagan & Gerard with 17,5% and empowerment group Mogwele Properties with a 12,5% interest.
Empowerment interests from the Highveld Mall region will also have a 10% direct investment in the centre.
