An analysis of South Africa’s biggest shopping centre, Fourways Mall, and the busiest, Mall of Africa, shows the latter is a much better investment.
Over the last few weeks, Fourways Mall and Mall of Africa made headlines for big investments in these prominent properties.
In June, the Competition Commission approved a R1.07 billion deal for Attacq Waterfall Investment Company (AWIC) to buy 20% of Mall of Africa.
The approval followed the May 2024 announcement that Attacq, through its subsidiary, AWIC, was set to acquire the remaining 20% stake in Mall of Africa from the Atterbury Group.
Before the deal, Attacq Waterfall Investment Company held an 80% stake in Mall of Africa, which means that it would now own 100%.
The acquisition was good news for Attacq, a JSE-listed Real Estate Investment Trust (REIT), as Mall of Africa is performing well.
Mall of Africa, which opened its doors on 28 April 2016, is South Africa’s biggest single-phase mall development.
It boasts 130,000 square meters of retail space, over 300 shops, and the southern hemisphere’s largest rooftop Solar PV system.
As of 31 December 2023, Mall of Africa’s compounded annual trading density growth over the past three years was 16.1%. Its rent-to-turnover ratio was 7.5%.
Attacq’s latest annual report showed that the positive retail trade in Mall of Africa resulted in a 91.6% increase in turnover rental and a 71.4% increase in third-party income.
“A 10.8% growth in rental income for the year was supported by 21 new brands being introduced, 16 store upgrades, and 33 leases renewed,” it said.
Attacq CEO Jackie van Niekerk said they were delighted with acquiring 100% of Mall of Africa because it is one of their flagship retail assets.
“Sole ownership of Mall of Africa will allow control over the asset in influencing growth and trade,” he said.
Van Niekerk added that they aim for Mall of Africa to remain one of South Africa’s top-performing super-regional malls.
The news around Fourways Mall, which has been struggling following an expensive reconstruction in 2019, has also been encouraging.
Fourways Mall is South Africa’s largest shopping centre with a gross lettable area (GLA) of 178,000 square meters and 350 stores.
However, following its re-launch in 2019, Fourways Mall has been unable to live up to expectations.
The mall’s net rent per square meter declined from R298 in 2020 to R262 in 2023, and it was struggling to retain tenants.
To address these problems, Fourways Mall is investing in a strategic renewal with Flanagan & Gerard and Moolman Group as new asset and property managers.
In May 2024, the newly assembled Fourways Mall management team revealed its targeted focus areas for the next six months.
“This collaboration marks a pivotal juncture in the mall’s journey towards cementing its position as the premier shopping destination in its primary and secondary catchment areas,” they said.
The strategic renewal includes a comprehensive six-month plan to enhance the mall’s infrastructure and services.
This plan will prioritise the implementation of improved signage for seamless navigation to and from the mall.
It will introduce new tenants, deploy full backup power, enhance parking area lighting, and upgrade security measures.
They will also optimise traffic flow, enlarge parking bays, and revitalise the surrounding area, focusing on taxi services, hawkers, landscaping, and traffic light systems.
“The initial six-month strategy is poised to lay the foundation for the overarching objective of re-establishing Fourways Mall as a top-tier shopping destination,” the mall said.
The execution is making progressing well. On 13 June 2024, Fourways Mall announced a new taxi holding area to alleviate road congestion and offer commuters quick and safe access.
It has now expanded its commuter court, which forms part of the revitalisation project. The court manages traffic flow inside and outside the Fourways Mall.
Fourways Mall versus Mall of Africa
A side-by-side comparison is interesting because the two malls are fighting for market share in the highly competitive shopping centre market in Johannesburg.
The table below gives an overview of key performance indicators of Fourways Mall and Mall of Africa.
| Measure | Fourways Mall | Mall of Africa |
| Trading density | R3,699/m² | R4,244/m² |
| Valuation | R8,034,975,994 | R5,794,958,000 |
| Gross lettable area | 178,202 m² | 131,038 m² |
| Value | R45,275 m² | R44,777/m² |
| Vacancy rate | 15.90% | 4.38% |
| Number of stores | 437 | 304 |
