Why Six South African Malls Just Changed Hands in a R2 Billion Deal

A major portfolio shake-up puts Enyuka Property Holdings in the retail big leagues; here’s what it means for the sector

While shoppers might not have noticed much change at their favourite local centres, a quiet R2 billion transaction behind the scenes has shifted the ownership of six major malls in South Africa and repositioned one property group as a serious player in the community retail market.

Enyuka Property Holdings, a previously under-the-radar fund backed by ONE Property Holdings, Mpande Property Fund, and Trinitas Private Equity, has doubled its portfolio overnight with the acquisition of six income-generating malls across Gauteng and the Northern Cape. These aren’t small strip centres either; they’re sizeable, high-footfall retail hubs, some with deep historical roots.

The biggest of the bunch: Southdale Shopping Centre

Topping the list is Southdale Shopping Centre, a 34,000 square metre retail landmark in Johannesburg. Built in 1969, it’s one of the city’s oldest shopping malls. Shoppers who’ve been visiting it for decades may remember its dated facades, but recent refurbishments, including an R70 million upgrade in the 2010s, have kept the mall relevant in a competitive space.

While Musgrave Centre in Durban holds the title of South Africa’s oldest mall (dating back to the late 1950s), Southdale remains iconic in Gauteng and is the crown jewel in this deal.

The other five malls snapped up include:

• Kempton Square, Kempton Park (17,000 sqm)

• Northmead Mall, Benoni (13,900 sqm)

• Sasolburg Mall, Sasolburg (13,700 sqm, 50% undivided share)

• Vaalgate Shopping Centre, Vanderbijlpark (13,600 sqm)

• Heritage Mall, Kathu, in the Northern Cape (13,100 sqm)

Each is larger than 13,000 square metres, with anchored tenants and footfall that make them valuable long-term assets.

From quiet deal to strategic power move

The seller, ONE Eighty Holdings, is a vehicle within the ONE Property group, which has been quietly modernising these centres for years. As part of the transaction, Enyuka arranged R2.1 billion in debt financing through a group of heavyweights including Nedbank, RMB, Futuregrowth, Absa, and Taquanta Asset Managers.

With this move, Enyuka’s portfolio has ballooned from R1.8 billion to R3.5 billion, bringing its total number of shopping centres to 28. That instantly makes it one of the largest unlisted retail real estate funds in the country, a position it now aims to expand.

Image 1: www.oneholdings.co.za

What’s behind the boom in community retail?

Enyuka isn’t just chasing big numbers. Its strategy is focused on grocery-led, investment-grade retail centres that serve peri-urban and value-focused communities. According to CEO Chris van Reenen, the centres were carefully curated to blend national retailers, local businesses, and essential services, a formula that became especially valuable during the Covid-19 lockdown years, when more shoppers turned to local malls instead of sprawling regional centres.

These mid-size community malls have become the heart of many neighbourhoods, especially in rural or previously underserved areas, where newer shopping centres are popping up fast. They offer convenience, stable rental income, and proximity to loyal, everyday consumers.

More than just retail: solar power and water points

Beyond retail offerings, Enyuka’s investment also extends into infrastructure and sustainability. About two-thirds of its centres now include solar photovoltaic systems, and the group is also upgrading water resilience, with boreholes and treated water collection points installed at select malls.

Importantly, these water facilities are made available to the public. That means communities surrounding centres like Southdale or Heritage Mall can collect clean drinking water during times of shortage, a thoughtful move in a country where basic infrastructure is often under strain.

What comes next?

Enyuka has signalled that its buying spree is far from over. The fund is actively looking to acquire additional centres that align with its strategy, those that are grocery-anchored, community-serving, and located in growth markets.

In an era where malls are adapting or dying, Enyuka is betting that the hyper-local, everyday essential retail model still has legs and plenty of room to grow.

Also read: R700 Billion and Rising: South Africa’s Bold Plan to Power Through Global Trade and Energy Shocks

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Source: Business Tech

Featured Image: BusinessTech