Sold via a private treaty negotiation facilitated by Nexus Property Group (NPG), the non-core asset was disposed of by a private fund.
Located on Stellenbosch Arterial Road, the Airport Shopping Centre features a tenant mix including anchor tenant Shoprite, PEP, Debonairs Pizza, OK Furniture and KFC, and was 77% occupied at the time of the sale. With 12,213m2 of gross lettable area, the shopping centre was sold at a 9% yield and has a national tenant ratio of 91%.
“The corporate disposal created a valuable opportunity to invest in a retail property in a developing area that would otherwise not be on the market,” said Elias Tzouvanni, co-director of NPG.
Greg Nafte, co-director of NPG, says that despite the on-going debate about South Africa’s oversupply of shopping centres, he believes that the number of centres in the country is sustainable. “In particular, we are seeing continued demand for large scale retail developments in townships and rural areas which target lower income groups. Unlike the affluent suburbs, there are still various developing nodes in South Africa that do not have a retail presence.
“If managed correctly the Airport Shopping Centre has the potential to become a booming retail hub, with the growing surrounding communities playing a key role in the development of the centre.”
