The Futuregrowth Community Property Fund (Comprop) has acquired KG Mall, which brings the Comprop portfolio to 23 shopping centres, with a total gross lettable area of more than 392 000 meters squared valued in excess of R6.6bn.
KG Mall is a quality shopping centre situated at the entrance to the Kwa-Guqa township in Emalahleni, which is approximately 95kms east of Pretoria in Gauteng. The 21 483m2 shopping centre consists of a single-storey main internal mall with a central Shoprite anchor, as well as a number of line shops and a Cashbuild that trade onto an expansive parking area which includes a KFC and a McDonald’s drive-thru.
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Smital Rambhai, Fund Manager of Comprop, said: “The acquisition of KG Mall fits in with our long-term strategy of acquiring dominant quality shopping centres with strong national tenants that will have strong sustainable income growth over the long term for our investors.”
Comprop is a flagship fund among Futuregrowth Asset Management’s suite of developmental investments.
The Futuregrowth Community Property Composite is a portfolio specialising in the acquisition of new and existing shopping centres which cater to the needs of underserviced communities throughout South Africa and forms part of Futuregrowth’s suite of developmental investments.
The Composite aims to outperform the CPI by 4% per annum before the deduction of taxes and fees and with income reinvested over a rolling 3-year period.
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The Composite currently owns 22 shopping centres located in rural and township areas in seven of the nine provinces. These centres provide retail services and products to a primary target market of approximately 10 million people. Overall, the Fund has purchased, developed or (in some cases) disposed of 34 shopping centres countrywide since inception.