New R850 million apartments coming to major South African shopping mall

Work has begun on an R850 million redevelopment that will convert and construct 1,200 new residential apartments next to Menlyn Park Shopping Centre, transforming Menlyn Office Park into a major mixed-use living precinct.

Pareto, the owner of Menlyn Park Shopping Centre, in partnership with Divercity Property Group, has officially broken ground on the residential redevelopment of Menlyn Office Park.

The project commencement follows a highly competitive request-for-proposals process in which Pareto selected Divercity as its residential development partner.

Located immediately adjacent to Menlyn Park Shopping Centre, the redevelopment will introduce 1,200 residential apartments in the heart of the popular and growing Menlyn node.

The project involves developing 460 new residential apartments through the conversion of existing three- and four-storey office buildings into residential units.

It will also feature 740 new apartments to be delivered across four newly constructed buildings, planned at heights of up to 10 storeys.

“This development signals our commitment to shaping the next chapter of the Menlyn precinct,” said Pareto Group CEO Malose Kekana.

“By introducing high-quality residential options next to one of South Africa’s premier malls, we are creating a vibrant, connected node that reflects how people increasingly want to live, work and spend their time.”

Divercity and Pareto will co-design the residential precinct and co-own it on a 50/50 basis upon completion, with Divercity providing residential property management services through its subsidiary Ithemba Property Management.

“We are thrilled to begin this new relationship with Pareto with such a meaningful and exciting project,” said Divercity CEO Carel Kleynhans.

Pareto is one of South Africa’s leading real estate investors and developers with a track record of shaping iconic regional and super-regional shopping centres across South Africa, as well as mixed-use developments.

The group has an extensive property portfolio, consisting of major developments like the Sandton Convention Centre, Cresta Shopping Centre, Mimosa Mall and Tyger Valley Shopping Centre.

Project partner, Divercity, invests in high-quality rental housing in central, connected neighbourhoods and mixed-use environments in major economic nodes.

Divercity owns a R6 billion property portfolio of 9,250-plus rental apartments, with complementary office, retail, and educational space. It has a R3 billion development pipeline.

Some of its key developments in Johannesburg include the 30-storey Towers Main in the heart of the Absa Precinct and Jewel City, which spans six city blocks.

Menlyn sparkles

The Menlyn node, where the R850 million development is taking place, has grown from strength to strength in recent years.

This success has been driven by the continued success of Menlyn Park Shopping Centre and the growth of nearby Menlyn Maine, leading to rising demand for well-located, mixed-use residential opportunities.

According to statistics from Property24, the average sectional title in Menlyn has sold for R1.6 million in 2025. Sellers in the area are primarily 65 years or older.

Buyers are mainly in the 50 to 64 year age bracket, but the area also appears to be attracting a number of younger buyers in the 18 to 35 year age range.

The new apartments will sit within the green, tree-rich environment of the park, and benefit from extensive neighbourhood amenities all seamlessly linked within walking distance.

These amenities include more than 400 stores, services and restaurants at Menlyn Park Shopping Centre. The conversions and new builds will progress simultaneously, with the first units scheduled for delivery in 2027.

R850,000 Menlyn Office Park redevelopment