Vukile Property Fund has reached an agreement to acquire 100% of Botshabelo Mall, in the Free State’s largest township, for R443 million.
In a pre-close presentation to investors, Vukile said that it made several changes to its South African portfolio,
This included selling four non-core assets for R625 million, acquiring 50% of Chatsworth Mall in KwaZulu-Natal for R620 million, and acquiring Botshabelo Mall.
The group’s pre-close presentation showed that Botshabelo Mall is expected to be transferred by June 2026, with a net operating income yield (NOI yield) of 8.5% and a Cash-on-cash (CoC) yield of 8.5%.
Construction of the mall began in 2015 and cost R320 million. STANLIB, the asset manager of the Liberty Property Portfolio, and Khora Investments developed the mall.
The 21,000 sqm mall opened its doors in 2016 and was aimed at serving the local community, whose nearest shopping mall was 50km away in Bloemfontein.
Liberty’s interest in the mall aligned with its strategic intent to have property located in growing townships, which continues to be a trend in the retail space.
Botshabelo is part of the Mangaung Local Municipality and is the single largest township in the Free State. It has a population of just under 200,000 people.
Prior to the mall’s opening, the vast majority of people from the area were forced to shop in Bloemfontein and Thaba ‘Nchu, where the nearest malls were situated.
The mall is located at the corner of Main Road and N8 National Highway. Main Road is a key route in and out of the township, while the N8 is the main transport route between Maseru, Lesotho, and Bloemfontein.
In 2019, Liberty, via Liberty Two Degrees, acquired the remaining 30% stake in the mall that it did not already own.
Vukile is one of South Africa’s top real estate investment trusts (REITs), with interests in South Africa, Spain and Portugal.
The group’s South African operations are projected to show like-for-like NOI growth of 10.1%, driven by sustained high occupancy, additional PV, and operational cost savings, such as borehole water savings.
The group’s Township and Rural centres continued to outperform, with year-on-year growth in sales (+5.2% and +5.3%) and footfall (+0.7% and +0.7%).
Botshabelo Mall Photos
