Redefine invests R45m in Mall of the South to enhance value offering

Redefine Properties, a landlord listed on the Johannesburg Stock Exchange (JSE) with a diversified property portfolio valued at about R100.4 billion, is investing capital expenditure worth R45 million in Mall of the South (MOTS) as it looks to generate additional value from the recently acquired retail asset.

Located in the heart of southern Johannesburg in the affluent suburb of Aspen Hills, the 68,168sqm Mall of the South offers optimal exposure and convenient access from two main arterial roads, Kliprivier Drive and Swartkoppies Road, that border the mall.
“Mall of the South, with a varied retail offering of 160 stores as it stands, is a key asset that is situated in a node where it is the dominant retail offering,” says Nashil Chotoki, National Asset Manager at Redefine. “It’s an asset that is accretive for our portfolio, from an investment return perspective.”

Chotoki adds that future residential development within the node will further improve MOTS’s performance and dominance.

Redefine is investing R38 million in capital expenditure to develop available bulk land for two fast-food drive-throughs that will supplement the mall’s existing fast-food offering, as well as a tyre fitment centre.

In conjunction with the drive-throughs, Redefine has engaged the taxi associations and relevant local authorities, such as the Gauteng Department of Transport and the Johannesburg Roads Agency, to construct a taxi rank on the mall’s premises.
Currently, commuting customers are dropped off on Swartkoppies Road and walk to access the mall. The new plan allows for customers to be dropped off inside the mall’s perimeter after the taxi rank is moved, improving access and providing a more convenient option for commuter shoppers.

Chotoki says the expected completion of the taxi rank relocation is dependent on the Gauteng Department of Transport’s approval.

Redefine has taken advantage of the opportunity provided by Game leaving MOTS with the addition of Shoprite which officially opened in May 2024. This is in keeping with its strategic focus on increasing its exposure to the essential services category, which is currently experiencing growth and capturing the most consumer spend.

According to Chotoki, this reconfiguration will draw in a different kind of customer that is looking for value and essential offerings, increasing foot traffic in the mall. “The relocation of the taxi rank contributes to the success of enabling the value offering,” he continues.
Redefine is also working with existing retailer Incredible Connection, a reputable retailer backed by Pepkor, to enlarge the store space to cater to the electronics gap left by Game’s vacancy.

“We are continuously lowering our exposure to and right-sizing underperforming tenants as part of ongoing leasing strategies. We’re also introducing new retailers that are entering the market to MOTS’s tenant mix.”
The remaining R7 million capital expenditure will be used to consolidate the fast-food offering into a single food court, as well as expand the existing restaurant area onto an expansive outdoor deck that aims to improve the overall ambience and dining experience. As it stands, food outlets are scattered across the premises.

Redefine is working to switch the entire mall to backup power integrated into the current solar PV plant to lessen reliance on municipal services and guarantee consistent operation of the asset. This integration will lower operating expenses and diesel consumption while also limiting business disruption.

MOTS has one of the largest solar PV plants in the Redefine portfolio at 5.2MwP, which provides approximately 25% of annual energy requirements.

“MOTS continues to see strong demand and high levels of footfall, which is consistent with the rest of the malls in our retail portfolio. This confirms that South African consumers still value the physical shopping experience.”
Around 34% of shoppers sit in the high-income category and, therefore, contribute to a higher basket of spend, comparatively. Following the value-focused adjustments and addition of a value-focused offering, Redefine hopes to make the mall’s offering more diverse and inclusive to all income levels.

Mall of the South’s current valuation (R1.8bn) is in line with its purchase value. According to Chotoki, the planned additional capital expenditure will increase the asset’s value even more.

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