Prominent South African shopping mall gets R276 million boost

One of South Africa’s largest Real Estate Investment Trusts (REITs), Redefine Properties, has increased its stake in the Pan Africa Mall in Johannesburg, Gauteng.

The Pan Africa Mall is situated on the corner of 3rd Ave and Watt St, Alexandra. It opened in 2009 and became South Africa’s first fully integrated shopping mall and a 25,000 m² taxi facility.

With close proximity to Sandton and the industrial area of Wynberg, Pan Africa Mall forms part of the heart of bustling Alexandra’s vibrant community. 

The shopping centre is an easy-to-navigate, double-level mall that provides the community with various quality national retailers.

The Pan Africa Mall tenants include various fast-food outlets, restaurants, speciality fashion stores, and service stores. 

Redefine Properties released its pre-close investor update for the half-year ending 28 February 2025, which outlined its acquisitions in the six months.

One of these acquisitions was an increased stake in Pan Africa Mall, in which Redefine first acquired a shareholding in 2024.

In May 2024, Redefine acquired 50.87% of Pan Africa Development (PAD) from Atterbury Property Fund. PAD is the company that owned the original Pan Africa Mall.

Redefine’s 2024 financial results showed that its 50.9% controlling stake in the mall has a fair value of R395 million and a net asset value of R177 million.

In its latest interim results, Redefine revealed that it acquired the ‘second phase’ of Pan Africa Mall for R276.2 million in the reporting period.

The company said the initial yield on this investment – the return on investment expected initially from the property – is 9.25%.

Redefine now owns 100% of Pan Africa Mall’s second phase. In December 2024, it increased its shareholding in PAD by 17.0% for R30 million, bringing Redefine’s shareholding to 67.9%.

Since acquiring a stake in the mall, Redefine has invested a significant amount of money in its development.

After acquiring its stake in the property, Redefine expanded Pan Africa Mall in November 2024, which added 9,000 square metres of additional space and a feature facelift.

The centre now features a new upper-level floor for fashion retailers. This includes relocated Mr Price and Ackermans stores and an extended ground floor with a new Roots Butchery, an expanded Truworths, and an FNB branch.

Notable new tenants at the shopping centre include W.Edit, Sportscene, Pick n Pay Clothing, Jam Clothing, Hungry Lion, Vision Works, The HUB, Selfast, Nizams, Clothing Junction, and Tekkie Town.

Redefine CEO Andrew König said the expansion would create opportunities for local businesses and investment in sustainable solutions like solar power.

BusinessTech reported that the upgrade incorporates full backup power and water.

This includes exploring the sinking of a borehole, installing a R12.2 million solar photovoltaic system, and using energy-efficient lighting and water-efficient toilets.

“Pan Africa represents a step forward in expanding our local portfolio and is an example of our commitment to facilitating a quality communal shopping experience for all South Africans,” König explained.

“Going to your local centre should be an exercise in comfort, safety and convenience, the defining attributes of any mass retail space.”

Redefine’s purchase of Pan Africa Mall followed the company’s full acquisition of the Mall of the South – one of South Africa’s largest retail properties located in Johannesburg.

König explained that retail accounts for more than 40% of Redefine’s asset platform in South Africa. 

“In alignment with our retail strategy and capital allocation plan, these acquisitions show we are looking to the future to develop and manage properties that speak to a corporate vision and identity characterised by excellence, diversity, and versatility.”

Inside Pan Africa Mall