Siyathenga has also invested over R50 million in the refurbishment of the existing centre to increase its appeal to shoppers.

The acquisition, together with Siyathenga’s ownership of the existing Boardwalk Shopping Centre, brings the total value of its investment in the Boardwalk to approximately R700 million.

Commenting on the transaction, André von Bülow, Managing Director of Siyathenga Property Fund says, “Richards Bay is experiencing unprecedented growth as a result of its popularity as a port facility and business centre and the existing retail facilities are insufficient to meet the current and anticipated future demand.  The existing Boardwalk Shopping Centre, together with its extension, will have a total lettable area of over 66 000 m2 and will, in addition, have an extremely strong tenant mix. All these factors will ensure that the asset will deliver robust and sustainable growth to linked unitholders.  The extension to the Boardwalk Shopping Centre is due to open in April 2008.”

“This acquisition is in line with Siyathenga’s long-term objective to grow its asset base with quality urbanised retail properties.  With this increase in the size of our portfolio, our asset base will stand at over R2.25 billion,” concludes Von Bülow.