Real Estate Investor Magazine South Africa May/June 2015 | Page 43

REI COMMERCIAL

EXPERT Q&A
BEE TRANSACTION GAINS
OVERWHELMING RESPONSE

BALLITO JUNCTION MALL DEVELOPMENT GETS GREEN LIGHT

T

he re-development of Ballito Junction regional shopping centre has been given
the go-ahead by the local KwaDukuza Municipality.
The approved Site Development Plan (SDP) for the 65,000m2 mall project
will see the existing mall being extended by more than six times its current size.
“Getting the green light means we can commence with the re-development of
Ballito Junction into the dominant regional shopping centre on the Kwa-Zulu Natal
(KZN) North Coast. This exciting development will see the existing 10,000m2 centre
being overhauled and extended to 65,000m2,” adds Patrick Flanagan, Executive
Director of Flanagan and Gerard Property Development.
Menlyn Maine and Flanagan and Gerard Consortium, acquired the Ballito Junction
site and surrounding 10ha undeveloped prime property from ABSA Bank.
The consortium officially took transfer of the property in November last year.
“At R1.4 billion, this is a massive investment not just in Ballito but KZN. While this
initial investment will take the mall to 65,000m2, development rights that exist on
the site allow for the centre to be further expanded to 90,000m2,” says Menlyn Maine
Director, Carl Jankowitz.
Construction on Ballito Junction is anticipated to take about 24 months.
The new mall is scheduled to open in the first quarter of 2017.
The KZN North Coast region is regarded by many as one of the most significant
urban growth areas in South Africa, having been bolstered by the relocation of the
Durban airport. Boomtown Ballito is just 10km away from King Shaka International
Airport and the Dube TradePort development.
Darren Wilder
CEO
Fairvest Property Holdings Limited

Fairvest has entered into an agreement to acquire
two key shopping centres, Middestad Centre and
Mega Park. Middestad Centre is a 19 943m mall,
located in Bloemfontein’s CBD. Mega Park is a 5
963m mall located in the South Western Quadrant of
Bloemfontein. Fairvest’s strategic focus is on retail
properties in the high growth, lower LSM consumer
market.
James Wilson
CEO
Amdec

We take a multifaceted approach to sustainability
and energy-efficiency. We intend to pursue more
Green Star SA ratings for all our new developments,
and some of our existing ones, we are also adding
more resource-efficient features to all our assets. This
helps take strain off our power grid and our building
users’ pockets.
www.reimag.co.za

Rob Kane
CEO
Texton
Q What does this BEE transaction
entail?

Texton Property Fund’s shareholders have
given their overwhelming support to the
broad-based Black Economic Empowerment
(BEE) deal which was announced in
December last year. This transaction,
together with the investment by P D Naidoo
of PDNA Property Investments in May 2014,
will result in a total black ownership of
approximately 25% of Texton.
Q What has been a critical element
of this deal?

Selecting the right BEE partners has been
a critical element of the deal. We are very
pleased that we have secured a strong
consortium that is not only broad based
in terms of gender and reach into rural
communities, but offers us expertise and
extensive business networks in the property
sector.
Q Who are the new BEE Consortium’s
shareholders?

The BEE Consortium’s shareholders
comprise of Zava, Jade and Ditikeni. Zava
is a black owned, managed and controlled
diversified investment company. Jade is
a 100% women controlled and managed
investment holding company. Ditikeni,
meanwhile, is an investment holding group
with 19 shareholders, which are non-profit
organisations involved in rural poverty
alleviation, feeding schemes and AIDS
actions.
Q How has the transaction structure
been designed?

The transact