R674 Million Mall Deal Gets Green Light, Boosting Retail in Underserved KZN Communities

In a significant move for retail in rural KwaZulu-Natal, the Competition Commission has recommended approval for Fairvest’s acquisition of Jozini Mall and Tugela Ferry Mall for a combined R674 million. The deal, first announced in October, is set to transfer two vital commuter-centric shopping centres to the listed property fund, aligning with its strategy of investing in retail assets that serve underserved communities.

The two leasehold malls, currently managed by the Muller Group, are community anchors in their respective areas. Jozini Mall, with a gross lettable area of 19,188 sqm, is being acquired for just under R400 million, while the 14,853 sqm Tugela Ferry Mall is priced at R275 million. Both are anchored by Shoprite supermarkets, serving as essential retail hubs.

A Strategy Focused on Community Retail

Fairvest has consistently targeted retail properties located near transport links and community centres, focusing on areas with high demand for formal retail space. This acquisition fits squarely within that vision. The malls are expected to generate approximately R119 million in revenue for the 12 months ending September 2025, with a distributable income of just under R12 million.

The purchase price will be paid in cash, funded through third-party financing, and includes a 0.5% monthly escalation from November 2025 until the transfer registration, which was initially anticipated for the end of January 2026.

Preserving Vital Community Infrastructure

The transaction ensures the continued operation and investment in retail infrastructure that forms the commercial heartbeat of these communities. By acquiring these assets, Fairvest is betting on the long-term growth and consumer demand in regions often overlooked by larger retail developers.

With regulatory approval now secured, the deal is poised to conclude, marking a major consolidation in the community retail sector and reinforcing the importance of strategic, socially-conscious property investment in South Africa’s evolving retail landscape.

{Source: BusinessTech}

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