CAPE TOWN - Maluti Crescent Shopping Centre, formerly Setsing Crescent in Phuthaditjhaba in the Free State, will be receiving a major redevelopment and expansion boost from JSE-listed retail REIT Vukile Property Fund.
The redevelopment will see it become the largest shopping centre in town.
The project will add 12,357 sqm to the centre, which will take it to a total of 34,360 sqm as well as a new undercover taxi rank of 100 bays and more parking will be added.
At the same time, the development is planned to transform Maluti Crescent from a strip mall to a modern, enclosed shopping centre.
Maluti Crescent was acquired by Vukile in its acquisition of the retail portfolio of the former Synergy Income Fund, two years ago.
Vukile then speedily identified the opportunity to unlock greater performance from this asset.
The upgrade of the centre responds to shopper demand and Maluti Crescent's outstanding metrics.
Vukile Executive Asset Manager, Itumeleng Mothibeli said: "This major investment in Maluti Crescent in backed by Vukile's data-driven asset management. The strategic project will ensure the shopping centre is dominant in its market and is enhanced with strategic improvements that support its trading. For Vukile, this redevelopment has a projected net yield of 8.5% for its first year after completion. Vukile's investment will also extend the lifecycle of this shopping centre asset and position it to better meet the modern retail needs of the 80,000-plus households of Phuthaditjhaba, as well as its surrounding areas."
Maluti Crescent is anchored by a Super Spar, Game, Cashbuild and Woolworths as well as all five major banks and a strong line-up of national fashion retailers.
Vukile, however, has appointed leading shopping centre developers and leasing specialists, Flanagan & Gerard Property Development and Investment as the development managers for the innovative redevelopment and expansion of Maluti Crescent.
Flanagan & Gerard Property Development and Investment, Managing Director, Paul Gerard said: "The established shopping centre is a great foundation from which to develop this re-imagined retail property asset. Its conversion into a closed mall will be an exciting improvement on the current open mall shopper experience.
The new centre's fresh, modern look and feel, with highly convenient access and visibility as well as a shopping environment that protects the customer from the harsh weather, will allow Maluti Crescent retailers to optimise their trade. This will provide future growth for its retailer's turnovers and make Maluti Crescent the dominant retail centre in the region."
Mothibeli says that the upgrade of Maluti Crescent will add Pick n Pay as a second food anchor. Space will also be provided for national retailers to expand their footprints in the centre to optimise their excellent trading densities.
The retail mix will be strengthened with expanded stores from Woolworths, Truworths, Identity, Foshini, and Sportscene. The redevelopment will also introduce new retailers to the centre's retail mix. Gerard confirmed that the brands that will be joining Maluti Crescent includes Mr Price, Relay, and Donna as well as a variety of independent national and local retailers.
- BUSINESS REPORT ONLINE