Investors snap up South Africa’s first-ever shopping mall 

The Competition Commission has approved the sale of Killarney Mall in Johannesburg to AJPG Property.

This centre was the first mall-type suburban shopping complex in the country, opened 65 years ago in the heart of the prestigious areas of Houghton, Westcliff & The Parks.

On Thursday, 8 October, the Competition Commission announced that it has conditionally approved the sale of Killarney Mall to AJPG Property.

The mall is currently owned by Octodec Investments, a real estate investment trust that also owns Woodmead Value Mart, The Park, and Waverley Plaza.

Should the sale go through, Killarney Mall will be transferred to AJPG Property, which is the property investment vehicle of the AJP Group.

The group owns 15 retail properties, mostly located in Gauteng, including Kempton Gate Mall, Steeledale Mall, Glen Balad Mall, and Elgin Mall.

Killarney Mall will fit well into this portfolio, with the centre located near some of Johannesburg’s wealthiest neighbourhoods.

The Heritage Portal describes Killarney as “one of the great historic suburbs of Johannesburg”, which originally formed part of Braamfontein.

In 1899, the eastern section of then-Braamfontein was sold by the Houghton Estate Gold Mining Company to an Irishman named William Cook.

Cook named this parcel of land “Killarney” after a farm in his homeland where his wife was born.

Due to its proximity to the historic Johannesburg CBD and mines, Killarney quickly became known as a wealthy neighbourhood during South Africa’s gold rush.

Today, Killarney is a small suburb, with many of its houses having retained a modernist 1950s and 1960s style. 

Killarney Mall was built in 1961 and has undergone several refurbishments since.

Today, the centre is anchored by a Pick n Pay and Woolworths, along with other well-known South African retailers, including Ackermans, Clicks, Dis-Chem, Mr Price, and a PNA.

AJP Group will acquire the entire mall, which comprises retail and A-grade office space, as well as a fuel service station.

In approving the transaction, the Competition Commission said it is unlikely to substantially lessen or prevent competition in any market. 

However, to address public-interest concerns, the merger parties will be required to establish a dedicated empowerment fund.

They must also support the businesses of historically disadvantaged persons to enable them to establish and operate retail trading businesses.