Growthpoint Properties, the largest listed property company on the JSE with property assets worth more than R20 billion, is to acquire the R500 million Woodmead Retail Park from Investec Property Group.

Construction of the 45000m² lifestyle shopping centre has begun and is expected to be completed by March next year, says Investec Property Group, which also manages Growthpoint .

Ronnie Sevitz, a director of Investec Property Group, says the group has been working on developing the centre for the past four years.

"We approached  Growthpoint . They are a natural outlet for Investec Property Group.

They were very keen on it (the shopping centre) and we did a deal with them," says Sevitz.

The retail park will be anchored by a Pick 'n Pay Hypermarket and Woolworths store.

"We're confident about it being fully let. It's close to 80% let at this stage," he says.

Stephan le Roux, fund manager for retail property at Growthpoint Properties, says retail centres have "done well" in 'Woodmead as a whole" and are continuing to perform well.

"To an extent the (retail) catchment area has enlarged to jump over the highway and the Woodmead area is now catching the high-density residential developments (in Sunninghill)."

Le Roux says there is strong demand for retail and there "is nothing in the way of proper retail on the western side of the Midrand area".