Growthpoint Properties Limited has secured ownership of the entire Longbeach Mall in Noordhoek in the Western Cape after acquiring the additional 49,9% of this regional property asset for R138 million.
Managed by Investec Property Group, Growthpoint is South Africa’s largest JSE-listed property holding and investment company, with property assets in excess of R15 billion.
Growthpoint previously acquired 50,1% ownership of Longbeach Mall with its incorporation of the Primegro portfolio in May 2003, together with the pre-emptive right to acquire the remaining portion of the mall from the original developer Nedbank.
“Securing the full ownership of Longbeach Mall contributes to achieving Growthpoint’s strategy to grow its portfolio of quality properties, specifically its Western Cape retail assets,” says Growthpoint Properties Limited Retail Fund Manager Stephan le Roux.
Incorporated in this transaction is Growthpoint’s purchase of two adjacent portions of land for a total of R6 million. The company is investigating the possibility of expanding the Longbeach Mall to accommodate a large national tenant.
The 30,322m2 A grade retail centre has been trading for nearly five years and has shown consistent growth in both turnover and foot count during this period. It serves the areas of Noordhoek and surrounds including Fish Hoek, Kommetjie and Simonstown.
The shopping centre currently has 102 stores including anchor tenants Pick ‘n Pay, Edgars, Woolworths and Ster Kinekor. All the major banks are represented and over 55% of leases in place expire in 2011 and beyond.
Since its first major transaction in August 2001, Growthpoint has grown its property portfolio from 9 properties valued at R100 million to more than 350 properties valued at over R15 billion.
Growthpoint has also delivered superlative growth for its linked unitholders with investors enjoying a 230% capital return on investment for the five year period from 2001 to 2006 at an annual compounded return of 32% in addition to an average 15,1% income return on initial investment.
